FEDERAL RESERVE BULLETIN

ISSUED BY THE FEDERAL RESERVE BOARfT AT WASHINGTON

DECEMBER, 1920

GOVERNMENT PRINTING OFFICE 1920

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis FEDERAL RESERVE BOARD.

EX OFFICIO MEMBERS. W. P. G. HARDING, Governor. EDMUND PLATT, Vice Governor. DAVID F. HOUSTON, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. CHARLES S. HAMLIN. JOHN SKELTON WILLIAMS, Comptroller of the Currency. D. C. WILLS.

W. W. HOXTON, Secretary. WALTER S. LOGAN, General Counsel. W. L. EDDY, Assistant Secretary. R. G. EMERSON, Assistant to Governor. W. M. IMLAY, Fiscal Agent. H. PARKER WILLIS, J. F. HERSON, Chief, Division of Examination and Chief Federal Director, Division of Analysis and Research. Reserve Examiner. M. JACOBSON, Statistician. J. E. CRANE, E. L. SMEAD, Acting Director, Division of Foreign Exchange. Chief, Division of Reports and Statistics.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis OFFICERS OF FEDERAL RESERVE BANKS.

Federal Reserve Bank of— Chairman. Governor. Deputy governor. Cashier.

Boston Frederic H. Curtiss. Chas. A. Morss. C. C. Bullen W. Willett. W. W. Paddock. New York. Pierre Jav Benj. Strong *.. J. H. Case2 L. H. Hendricks.3 L. F. Sailer J. D. Higgins.* E. R. KenzeL... Channing Rudd.3 G. L. Harrison.. A. W. Gilbart.3 Leslie R. Rounds.3 J. W. Jones.3 . R. L. Austin George W. Norris. Wm. H. Hutt, jr W. A. Dyer. Cleveland L. B. Williams 4. E. R. Fancher.... M. J. Fleming H. G. Davis. Frank J. Zurlinden.. Richmond ' Caldwell Hardy. George J. Seay. C. A. Peple Geo. H. Keesee. R. H. Broaddus A. S. Johnstone 5 John S. Walden6 Atlanta. Joseph A. McCord. M. B. Wellborn. L. C. Adelson M. W. Bell. . Wm. A. Heath.... J. B. McDougal. C. R. McKay S. B. Cramer. B. G. McCloud5 St. Louis Wm. McC. Martin. D. C. 0. M. Attebery J. W. White. Minneapolis . John H. Rich R. A. Young. W. B. Geery B. V. Moore. S. S. Cook Kansas City ! Asa E. Ramsay.. J. Z. Miller, jr C. A. Worthington J. W. Helm. Dallas | Wm. F. Ramsey. R. L. Van Zandt. Lynn P. Talley Sam R. Lawder. San Francisco j John Perrin J. U. Calkins Wm. A. Day W. N. Ambrose. Ira Clerk6 C. H. Stewart6

1 On leave of absence. 2 Acting governor. 3 Controller. * Acting chairman. 5 Assistant to governor. 6 Assistant deputy governor.

MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.

Federal Reserve Bank of— Manager. Federal Reserve Bank of— Manager.

New York: Kansas City: Buffalo branch Ray M. Gidney. Omaha branch L. H. Earhart. Cleveland: Denver branch C. A. Burkhardt. Cincinnati branch... L. W. Manning. Oklahoma City branch. C. E. Daniel. branch... Geo. De Camp. Richmond: Dallas: Baltimore branch... Morton M. Prentis. El Paso branch W. C. Weiss. Atlanta: Houston branch E. F. Gossett. New Orleans branch. Marcus Walker. Jacksonville branch. Geo. R. De Saussure. San Francisco: Birmingham branch. A. E. Walker. Los Angeles branch... C. J. Shepherd. Nashville branch J. B. McNamara. Portland branch Frederick Greenwood. Chicago: Salt Lake City branch. R. B. Motherwell. Detroit branch R. B. Locke. Seattle branch C. A. McLean. St. Louis: Spokane branch W. L. Partner. Louisville branch. .. W. P. Kincheloe. Memphis branch J. J. Heflin. Little Rock branch.. A. F. Bailey.

SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN is the Board's medium of communication with member banks of the Federal Reserve System and is the only official organ or periodical publication of the Board. It is printed in two editions, of which the first contains the regular official announcements, the national review of business conditions, and other general matter, and is distributed without charge to the member banks of the Federal Reserve System. Additional copies may be had at a subscription price of $1.50 per annum. The second edition contains detailed analyses of business conditions, special articles, review of foreign banking, and complete statistics showing the condition of Federal Reserve Banks. For this second edition the Board has fixed a subscription price of $4 per annum to cover the cost of paper and printing. Single copies will be sold at 40 cents. Foreign postage should be added w^hen it will be required. Remittances should be made to the Federal Reserve Board. No complete sets of the BULLETIN for 1915, 1916, or 1917 are available. in

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TABLE OF CONTENTS.

Page. Review of the month 1253 Business, industry, and finance, November, 1920 1264 Condition of wholesale trade 1274 Production of knit goods. 1275 Production of finished cotton fabrics.: 1275 The international financial conference at Brussels 1277 Method of adjusting salaries of bank employees to meet changes in the cost of living 1293 Gold re3erves of principal banks of issue, 1910-1920 1295 Official: Foreign branches of American banks 1298 State banks and trust companies admitted to system 1299 Banks granted authority to accept up to 100 per cent of capital and surplus 1300 Charters issued to national banks 1300 Fiduciary powers granted to national banks 1300 Rulings of the Federal Reserve Board 1301 Law department: Decision of the United States Circuit Court of Appeals in Atlanta "par clearance" case 1303 Miscellaneous: New coinage and paper currency laws for India 1298 Commercial failures reported 1300 Statistical: Retail trade index 1307 Foreign trade index 1309 Wholesale prices abroad 1310 Wholesale prices in the United States 1325 Discount and interest rates prevailing in various centers 1329 Physical volume of trade 1330 Gold settlement fund transactions 1339 Debits to individual account, October and November 1342 Discount and open-market operations of the Federal Reserve Banks 1345 Operations of the Federal Reserve clearing system 1350 Resources and liabilities of the Federal Reserve Banks 1351 Federal Reserve note account 1356 Condition of member banks in selected cities 1357 Imports and exports of gold and silver 1364 Estimated stock of money in the United States 1368 Discount rates approved by the Federal Reserve Board • 1368 Diagrams: Wholesale prices in the United States 1326 IV

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VOL. 6 DECEMBER, 1920. No. 12

REVIEW OF THE MONTH. Liberty loan, aggregating about $140,000,000. To meet these heavy maturities of principal and Fiscal operations of the Government during interest and at the same time provide for the the month of November have current requirements of the Government, en- Treasury snown a gross income of larged as they are by the extraordinary burdens finances. ° impos 3d upon the Treasury in connection with $275,420,812 on ordinary ac- paym 3nts to the railroads, the Treasury relies count and a gross expenditure of $426,092,313 chiefly on the income and profits taxes payable on ordinary account, the result accordingly be- on . This installment is not ex- ing a net deficit of $150,671,501. The Treasury pected to exceed $650,000,000. The Treasury must finance its further requirements, so far as Department on November 8 offered an issue of they are not covered by ordinary current re- certificates of indebtedness amounting to ceipts, through issues of Treasury certificates of $200,000,000, which was oversubscribed to indebtedness. It would be impossible to defer the extent of more than $92,000,000. The the payment of the December installment of amount allotted as announced on Wednes- taxes without forcing the Treasury to offer Treasury certificates in prohibitive amounts." day, November 17, was $232,124,000. The rate named was 5f per cent. Seven of the The year 1920 has been a period of decided Federal Reserve districts oversubscribed their advance in the process of eco- Close of a re- nomic readjustment consequent quota. markable year. Question having arisen in some quarters as to upon the conditions left by the the advisability of relaxing the requirements of war. Production had been developed to a very the Government relative to the payment on high point as a result of war necessities, be- December 15 of the fourth installment of in- sides being diverted into channels different come and excess profits taxes, the Secretary of from those normal in peace time. It was, the Treasury made public on November 22 a therefore, inevitable that a period of readjust- statement in which he outlined certain aspects ment involving some decrease in output, at of the present position of the Treasury, saying least temporarily, should ensue. On former in part: occasions, when problems of a similar sort have " The revenue act provides for the payment of been met with, the process of readjustment from income and profits taxes in four quarterly in- a war to a peace-time level of business has been stallments due on March 15, June 15, Septem- extremely rigorous. Conditions during the ber 15, and December 15. The taxes due on present period of readjustment have by com- December 15, 1920, represent chiefly the final parison been tolerable. Production during the installment due in respect to income and profits of the taxable year 1919. Taxpayers have al- latter part of the year has, it is true, fallen off ready had nearly 12 months' grace as to this in some branches following upon the readjust- final installment and have had every oppor- ment of the price structure. Fundamental al- tunity to make provision for its payment by terations in the distribution of labor between setting up the necessary reserves or purchasing trades and employments have also been a fea- Treasury certificates of indebtedness. The Treasury Department, moreover, has adjusted ture of recent months. In the banking field the its financial program to the tax payment dates advance of the volume of deposits has changed provided by the revenue act of 1918. There during the recent months into a recession, al- are outstanding nearly $700,000,000 of certifi- though Federal Reserve note circulation was cates maturing on December 15, 1920, and about $200,000,000 larger at the close of No- $300,000,000 additional mature on January 3 and January 15, 1921. On December 15 there vember than at the end of July. It is also to will also become payable the semiannual inter- be noted that there has been a marked change est on the first Liberty loan and the Victory in the composition of bank portfolios resulting 1253

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from the gradual retirement of long-term or by the war to the normal economic basis of speculative paper and the substitution of paper international and industrial life. based upon bona fide commercial transactions In thus estimating the position of the eco- growing out of the actual purchase and sale of nomic organization at the close goods. In international trade the conditions Basis of pros- <• , v 1AOA •, or the year 1920, very large which led to an excessive development of ex- rft emphasis should undoubtedly porting business have been in process of change, be placed upon the volume of production. It and a return to more normal conditions is now is in the quantity of output supplied by a in progress. So far as concerns the European nation that the best test is found of its true countries the year has been noteworthy in position from the economic standpoint. Al- international trade for a decided evidence of though the year 1920 shows a downward move- increase of productive power which, although ment in some branches of production and trade interrupted from time to time by internal diffi- and a lessening of the activity with which credit culties of one kind or another, has nevertheless media are employed, a gratifying aspect of the been the dominant feature in the foreign eco- year is seen in the fact that the changes thus nomic movement. far reported have been so small, especially Very sharp reduction in prices coupled when the great activity of production and the with heavy decreases in production, extensive great extension of credit which occurred during unemployment, and business reaction, often the war period are borne in mind. Considering involving bank failures, have been the out- the year 1920 in comparison with similar pe- standing features of readjustment in former riods, reaction shown by the indexes represent- years. The transition through which the ing the chief lines of business activity, as al- community is now passing, while necessarily ready stated, is in most cases relatively minor uncomfortable, has thus far been accompa- as compared with the volume of production nied by only a minimum of the unfavorable and trade when at its high point. While much symptoms developed on other occasions. While is said of changes in prices and particularly of the present process is as yet incomplete and declines of prices as an indication of economic though some lines of business may be expected retrogression, it is to be remembered that the to pass through a still further period of reor- real income of the community is the quantity ganization, there is good reason for believing of goods available for consumption and not the that with our present strong banking structure money value of the goods thus produced. The the difficulty of the transition will not be much fundamental test of the degree in which con- further aggravated and that a normal situation ditions which make for prosperity have been will be restored with far less than usual dis- regained and former industry restored is found tress. The fiscal situation both at home and in the indexes which exhibit actual volume of abroad is still uncertain due to the fact that, output. Of primary importance are statistics while the war was technically over at the signing showing the yield of agricultural and manufac- of the armistice, it was not over in the financial turing industries. Next to these are indexes sense until a long time later, while it has not showing the actual movement of goods from been possible during the readjustment period producer to consumer. The latter may be best to place public finance in any country upon derived from statistics of freight movement, its peace time footing, pending much closer figures showing the activity of money and credit, ascertainment of the best method of taxation. and data reflecting the activity of wholesale The close of the year 1920, however, in spite and retail trade. Prices play an important of the fact that in some branches of economic part as a factor in the process of distribution,, and financial life there is still much progress and the price level is of first significance to the to be made before reaching a definite basis for student of business conditions because it aids further growth, must nevertheless be regarded in definitely determining the profit-making po- as quite unmistakably a turning point in the sition of the various economic factors of the process of transition from conditions produced community as measured in terms of money

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It is true that reductions in wholesale prices some lines, such as those of textile production, in 1920 have greatly lowered the general levels. a so-called "sellers' market" eventually de- It should be remembered, however, that far veloped. That this situation had not be- too great stress may be placed upon the level come well established until the spring of 1920 of prices in connection with national condi- was far advanced is not singular. This period ditions, since prices are expressions of relative of higher production was apparently reaching value and hence of much greater interest to the its peak during the early months of 1920. individual than to the community at large. Since the late spring of the year 1920, how- Viewed from the standpoint of the volume ever, there has been in progress a certain de- of commodities rendered avail- crease in output. The condition of different The volume of *, -, £ ,. ,i industries in this regard is by no means uni- production. able for consumption, the year form, although it may be seen most clearly in 1920 has been one of unusual textiles. Shipbuilding, and very recently the success. As is well known, the output of iron and steel industries, exhibit an influence primary wealth—the product of the farms and, of the same kind. The decrease in unfilled in general, of agricultural enterprise—has been orders on the part of the United States Steel of more than average size. Preliminary esti- Corporation, which has been in progress ever mates have already been furnished for this since about the beginning of August, points output in former months. The figures of the clearly not only to a relative decrease in the Department of Agriculture, made available at activity of these basic industries but also to a the opening of November, are substantially falling off in that of other industries which are the same as those which have already been practically dependent upon them. Building published for October 1 and, as pointed out construction may be ranked as one of the in past issues, exhibit in most lines a substan- latter. Exactly how far the shrinkage in tial advance above the average of recent years, production has gone can, of course, be stated and in some important crops corstitute the only conjecturally as an aggregate figure, but largest output ever produced. In the case of light on the present situation is furnished by corn, the only product for which the November the Board's index of production, which makes estimates differ from those of October, the the following showing: estimated output, although showing a decline of about 17,000,000 bushels, still remains the Sept., 1920. Oct., 1920. Oct., 1919. largest on record. Rela- e Rela- While the situation as to agriculture is prac- Total. tive. Total. * Jf Total. tive. tically beyond question, the work of the year Receipts of live stock in respect to manufacturing is less clear. at 15 western mar- kets (in thousands of According to some investigators, however, the head) 5,266 75.6 5,355 76.9 6,962 100 Receipts of grain at 17 output of the country, whether as measured interior centers (in thousands of bushels). 110,111 116.0 95,955 101.1 94,901 100 in the aggregate or per capita, was probably Sight receipts of cotton (in thousands of bales). 772 42.1 1,463 79.7 1,835 100 close to high-water mark at the close of spring. Shipments of lumber re- ported by 3 associa- The facts would indicate that in the more dis- tions (in millions of feet) 716 85.3 699 83.3 839 100 tinctly manufacturing and industrial lines Bituminous-coal pro- duction (in thousands there had been subsequent to the heavy war of short tons) 51,093 90.8 50,744 90.2 56,243 100 Anthracite-coal produc- production a natural decrease in, and read- tion (in thousands of short tons) .". 5,125 60.6 7,645 90.4 8,459 100 justment of, output which became evident Crude-petroleum pro- duction (in thousands shortly after the opening of 1919 and which of barrels) 37,889 113.7 39,838 119.6 33,319 100 Pig-iron production (in continued for several months thereafter. The thousands of long tons) ?>, 129 167.9 3,293 176.7 1,864 100 requirements of, buyers did not dominate Steel-ingot production (in thousands of long market conditions, but there subsequently tops) 3,000 3,016 Cotton consumption (in developed shortages in various lines. Of this thousands of bales)— 458 82.4 400 72.0 556 100 Wool consumption (in situation the final result was a considerable thousands of pounds). 30,928 51.5 33,704 50.2 60,018 100 increase in productive activity, although in

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In order to illustrate clearly the changes in Cotton and woolen industries. production during the current year there have [Pounds.] been prepared and are presented herewith Cotton con- Wool con- four brief tables showing the situation in sumption. sumption. agriculture as based upon live stock, grain, Average for year 1918 2,573,561,000 ! 50,429,835 and cotton sight receipts during the year 1920; Average for year 1919 2,466,193,000 I 45,257,215 the production of bituminous and anthracite 1920. January I 2,958,625,000 059,862 coal and of crude petroleum; the output of February 2,582,970,000 247,652 March.." I 2,878,520,000 344,602 pig iron and steel ingots and the unfilled orders April ! 2,839,195,000 887,832 May I 2,705,400,000 649,381 of the United States Steel Corporation; and June ! 2,777,605,000 679,920 July I 2,627,025,000 372,064 the consumption of cotton and wool. August ! 2,415,965,000 849,956 September ! 2,288,235,000 928,337 Movement of agricultural products. October ! 1,999,185,000 [Monthly average, 1911-1913=100.] Grain and While it thus appears that the figures point Live stock flour re- Cotton receipts at ceipts at sight to some reductions in certain lines of productive 15 western 17 interior receipts. markets. centers. activities, the figuresthu s far available in other

Average for year 1918. 127 126 74 lines indicate an actual increase. Average for year 1919 129 106 84 Care should be taken in reviewing conditions 1920. January 139 102 126 at the close of the year 1920 February 105 99 90 March , 110 87 64 Movement of and in comparing them with April 90 56 44 goods. May 112 74 29 those existing at previous dates June 110 92 21 July 100 97 29 throughout the year to differentiate between August 109 114 24 September 114 137 61 production changes and trade changes. In all October 116 periods of transition it is the latter that are the Coal and petroleum. more obvious. It should steadily be borne in [Monthly average, 1911-1913=100.] mind that the year 1920 has been a more dis- turbed period in connection with the move- Anthracite Bituminous Crude coal pro- coal pro- petroleum ment of goods to market than in production, production. duction. duction. and that as a result there has been at times Average for year 1918 Ill 130 155 congestion and arrested movement of commo- Average for year 1919, 97 103 164 7 1920. dities, while at other times the deliver} and January 100 131 177 February 92 116 186 consumption of products has been steady and March 98 126 190 April 88 102 189 satisfactory. In general, the year may be May 105 107 193 June 103 118 195 divided into three periods, the first culminating July 105 123 201 August 99 131 206 in the early spring or toward the end of April, September 69 138 198 October 103 137 208 at which time a peak of congestion had been reached on the railways as the result of bad Iron and steel. weather and lack of satisfactory efficiency of [Monthly average, 1911-1913=100.] railroad personnel aggravated by the tentative Unfilled orders or "outlaw" strikes which had been in prog- Pig-iron Steel-ingot U. S. Steel production. production. Corpora- ress. Thereafter there ensued a period of tion. fairly steady moving of commodities to points

Average for year 1918 138 125 164 of consumption, assisted by the favorable Average for year 1919 110 114 weather in the spring and summer as well as by 1920. January 130 123 176 the increase in efficiency of the railroads of the February 138 127 180 March ,146 137 188 country. From about September onward the April 118 109 197 May 129 119 208 movement of goods again began to show a June 131 123 208 July 132 116 211 decline, this being due in the case of agricultural August , 136 124 205 September 135 124 197 staples to a tendency to hold products at the October 141 125 187 points of production, while in the case of manu-

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factured articles it was probably the outcome of 1920, be represented by 100, while the price a reluctance or unwillingness on the part of dis- level at that date was 200 as compared with tributors to go on receiving eonsignmen ts. This the level of 100 in 1913, the figure 100 would situation has been noteworthy from time to time be divided by 2. With the column exhibiting not only with respect to the domestic movement exports in this way has also been associated a of goods but also in relation to exports, It was corresponding column representing import con- worthy of note also that in spite of the large ditions based on 25 of the most important yield in agricultural lines the grain movement imports whose value in 1913 formed 47.7 per lias been unexpected!}7 small, partly in conse- cent of total imports. quence of defective transportation at certain Actual and adjusted values of imports and exports. times of the year and partly as a result of a [Monthly average values, 1913=100.] disposition on the part of farmers to hold back Value of Value of their product. Conditions in transportation imports of Value of exports of Value of selected total selected were reflected in the figures showing the move- total commodi- commodi- imports. domestic ties at 1913 exports. ties at 1913 ment of goods last spring and in certain de- prices. prices. creases of the same sort for the current autumn, notwithstanding that the ton-mile figures on 1919. January.. 142.6 111.4 299.9 124.7 railways are to-day of large size. In order to February 157. 4 128.0 281.4 99.0 March 179.1 161. 8 290.3 106.1 present the phase of the business situation April 182.7 169.3 333. 3 129.3 Mav 220.2 194.9 290.4 111.4 reflected in the movement of goods from manu- June 196.1 165.7 445.0 174.7 July 230.1 192.3 273.5 110.9 August 205.7 147.8 311.0 117.5 facturer to consumer there has been prepared September 291.4 217.5 285.3 103.9 October 269 0 193. 2 304. 2 104.2 a table, to show the movement of commodi- November 284.4 198.1 357.7 126.7 ties, of ton-mileage figures for the railways as December.. . 254. 8 172.4 327.6 114.6 follows: 1920. January 317. 2 217.3 352. 5 112.9 February 313. 0 213.1 309.9 98.7 Net ton mileage of United States raihvays. March 350.8 247.2 393. 6 128.9 April 331.8 212.7 329. 7 107.1 September, 1918 38,592,137,000 May 288.5 162.3 356. 2 112.5 June. 370.1 191.3 302.5 91.1 September, 1919 38, 860, 311,000 Tulv 359 6 178 4 313 9 101 3 August . 343. 8 178.1 280.2 87.3 January, 1920 34, 769, 722, 000 September 243.4 129.1 291.7 88. b February, 1920 32, 758, 789, 000 March, 1920 37, 990, 993, 000 April, 1920 28, 490, 595,000 An examination of the index numbers for the May, 1920 37, 884, 967, 000 value of imports and exports as thus given June, 1920 38,179, 565, 000 leads to the conclusion that with price fluctua- July, 1920 40, 435, 508, 000 tion eliminated, in the way already outlined August, 1920 42, 706, 835, 000 our export volume for 1920 is on a lower level, September, 1920 40, 999, 843, 000 some of the months for the period being lower In connection with this there should also be than the average monthly figure for 1913. The considered another table, exhibiting the total volume of imports, however, is higher than the movement of certain selected exports as 1913 level, a fact which illustrates the statemen t reflected in indexes presenting the total volume often made that the reaction subsequent to the of goods shipped as they would be if stated in war which had been generally predicted by terms of the price level of 1913, In order to economists is now in progress. The figuresfo r obtain these figures 29 of the most important imports and exports, both when measured in articles of export were selected whose value in volume and when measured in values, have 1913 formed 56.3 per cent of the total value of shown an absolute tendency to fall off, although exports. The export values of these commodi- the growth of imports up to the present time ties were then reduced for each month of 1920 has been greater than that of exports when for which figures are available in the proportion adjusted values are taken as a basis for com- indicated by the index number of prices as com- parison. The year 1920 must undoubtedly be pared with the price existing in 1913. Thus, regarded as a period of transition from war con- for example, if the value of the exports in July, ditions to peace conditions in our foreign trade.

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These changes are most clearly illustrated when lative single percentages designed to embody the influence of price fluctuations is eliminated not only the returns of the current month from the figures in order to place them on a but also accumulated results of preceding comparative basis of volume. months, point to a decline in sales, which It is also worthy of note in this connection has not, it would seem, gone to very great that after a period of steady growth during the length thus far, in some districts amounting first eight months of the year in the amount of merely to the curtailment or abolition of a shipping actually engaged in carrying our for- seasonal increase of the volume of business eign commerce a certain reaction has now set in, which would otherwise have been expected, as may be seen from the following table: the remaining volume being higher than that of the preceding year. The tendency, how- Tonnage of vessels cleared in the foreign trade. ever, in other districts has been distinctly [Department of Commerce.] downward, and at the present time the Board's [Monthly average, 1911-1913=100.] index points clearly to a limitation of the active buying of consumers which was so Net tonnage Per cent- noticeable during 1919 and the earlier part of Rela- age Rela- tive. Ameri- tive. 1920. This bears out the general impression American. Foreign. Total. can to total. already existing with respect to retail trade conditions as indicated by many reports of a September, 1918 2,009,194 2,290,872 4,300,066 Ill 46.7 185 September, 1919 2,627,480 2,481,676 5,109,156 131 51.4 203 general nature furnished by expert observers 1920. in the various branches of trade. The activity January 1,933,385 1,949,798 3,883,183 100 49.8 197 February 1,702,407 1,628,212 3,330,619 92 51.1 202 of retail trade is of special interest at the March 2,040,031 2,040,538 4,080,569 105 50.0 198 April 2,504,038 1,960,634 4,464,672 115 56.1 222 present time, because it usually is one of the May 2,729,790 2,436,247 5,166,037 133 52.8 209 June 3,199,274 3,141,913 6,341,187 163 50.5 200 last elements in the business situation to show July 3,302,538 3,616,052 6,918,590 178 47.7 189 August 3,616,267 3,929,602 7,545,869 194 47.9 190 the effects of those factors which make for September 3,421,531 3,513,599 6,935,130 178 49.3 195 depression or reduction. Curtailment of pur- chasing power does not usually occur, at least As is seen from the table, however, the ton- in full measure, until reductions of employ- nage figures thus far available show an actual ment and lowering of prices have resulted in increase in the amount of shipping required to lessening the incomes of buyers who are thereby carry our trade as compared with any preceding induced to suspend or limit their purchases. month during the whole course of the calendar Accordingly, a definite reaction in retail trade year, excepting only February and September. seldom presents itself until after readjustment The activity of retail trade is usually re- has made considerable progress in manufac- ^ #1 , garded as a direct index of the & turing and even in wholesale activity. This is Retail trade. „ for the reason that the decline in retail trade attitude oi consumers with re- makes itself felt in some districts at a date spect to the price level and is looked to by considerably later than that which appears to students of the business situation not merely mark the turning point in production by manu- for the purpose of obtaining a test of business facturers. The following table presents the conditions from the retail trade standpoint, combined results of the Board's study of the but also of affording an indirect index of the retail trade situation during the past year. probable rate at which stocks of goods will pass off through retail trade channels into the Retail trade activity—Per cent of increase in net sales of hands of consumers. For a good many department stores in 1920 over 1919. months past the Board has been developing a Jan. l, 1920, to close of— July 1,1920, to close of— Dis- retail trade index based upon figures concerning i trict. stocks of goods, turnover, and other impor- Jan. | Feb. Mar. Apr. May. June. July. Aug. Sept. Oct. tant items furnished by a -specified number of No. 1.. 34.8 32.5 31.6 27.5 25.8 26.2 19.9 15.1 15.2 10.1 leading retail establishments in the several No.3..i 22.2 : 20.3 j 26.2 20.5 30.9 31.0 23.8 24.9 19.6 17.3 No. 4.. ! 36.0 i 38.2 33.6 32.1 34.6 29.9 27.3 25.9 23.9 Federal Reserve districts. A study of these No. 12. 51.7 ! 46.5 41.0 36.9 34.7 33.2 21.2 21.4 19.8 16.8 figures, and especially a comparison of cumu-

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Figures showing the development of retail ment of the figures during the years 1919 and trade are not, however, indica- 1920, which is herewith presented: Activity of tive of more than the superficial business. Bank transactions as shown by debits to individual account. attitude of buyers with respect to consumption goods. They may be subject [In millions of dollars, i. e., 000,000 omitted.]

to other very special influences, as is seen from Jan., Feb., Mar., Apr., May, June, July, the fact that the prompt reduction of prices to District. 1919. 1919. 1919. 1919. 1919. 1919. 1919.

consumers may at times result in the temporary No. 1 1,717 1,355 1,570 1,514 1,766 1,863 1,989 and perhaps deceptive increase of buying on No. 2 18,683 14,927 17,189 17,859 21,418 21,613 22,953 No. 3 1,633 1,318 1,562 1,495 1,649 1,673 1,768 the part of consumers who believe it wise to No. 4 2,115 1,709 1,931 1,998 2,119 2,272 2,403 No.5 640 549 574 595 652 722 779 "stock up" in advance of actual needs. A No. 6 910 735 781 772 885 872 897 No. 7 3,975 3,307 3,713 3,732 4,180 4,217 4,556 better analysis of the general activity of trade No. 8 1,027 837 875 868 919 I 934 1,032 No. 9 713 477 584 629 661 | 614 646 throughout the whole economic structure is No. 10 1,134 1,002 1,131 1,092 1,242 1,125 1,321 No. 11 536 420 454 468 543 541 580 afforded by the study of figures showing the No. 12 1,709 1,450 1,680 1,620 1,862 1,748 1,994 actual use made of the mechanism of exchange Total.. 34,792 28,086 32,044 32,642 37,896 38,194 40,918 or, in other words, the extent to which ex- Aug. Sept., Oct., Nov., Dec, Jan , Feb., change media have been used for the purpose District. 1919 1919. 1919. 1919. 1919. 1920. 1920. of transferring goods from sellers to buyers. It is with a view to developing this phase of No. 1 1,712 1,788 2,246 2,181 2,354 2,277 1,760 No. 2 20,471 21,366 24,846 24,442 25,013 24,321 18,606 the situation that use has frequently been made No.3 1,612 1,780 1,853 1,766 1,970 2,034 1,631 No.4 2,136 2,358 2,411 2,283 2,621 2,626 2,186 in the past of data showing the per capita vol- No.5 722 729 862 831 846 913 729 No. 6 838 918 1,170 1,142 1,218 1,299 l,0L9 ume of money in circulation—an imperfect No. 7 4,328 4,552 4,777 4,704 4,959 5.134 4,320 No.8 916 945 1,073 1,043 1,111 1,224 1,008 index of the activity of exchange. Better than No. 9 648 821 852 753 770 736 6172 No. 10 1,322 1,276 1,348 1,347 1,409 1,481 i,2ai this, but still unsatisfactory, is the practice of No. 11 554 611 743 764 780 743 584 analyzing clearing-house figures. Early in its No. 12 1,977 2,099 2,344 2,227 2,436 2,396 2,030 effort to provide a satisfactory review of busi- Total.. 37,236 I 39,243 44,525 43,483 I 45,493 45,184 35,706 ness conditions the Federal Reserve Board Apr., May, June, July, Aug.,Sept.. Oct., instituted a system of statistics showing debits District. 1920. 1920. 1920. 1920. I 1920. 1920. 1920. to individual depositors' account throughout the No.l 2,082 2,103 2,151 2,021 2,084 1,761 1,876 2,106 country, relying upon the clearing-house banks No. 2 22,919 21,991 21,376 20,208 19,791 18,007 18,237 20,817 No.3 1,947 1,939 1,946 1,942 1,914 1,818 1,795 1,927 of the various clearing centers for this informa- No.4 2,616 2,608 2,556 2,667 2,757 2,424 2,269 2,109 No.5 828 816 841 805 823 743 742 805 tion. The figures thus accumulated are of large No. 6 1,174 1,143 1,132 1,036 1,053 970 1,009 1,046 No. 7 5,388 4,953 5,111 5,045 5,277 4,774 5,010 5,122 value in affording evidence as to the degree of No.8 1,115 1,054 1,055 997 987 917 957 1,006 No. 9 702 698 727 686 708 655 802 890 activity in the use of banking media and are No. 10 1,451 1,313 1,408 1,333 1,323 1,327 1,390 1,420 No. 11 670 633 652 614 652 645 726 786 accordingly deserving of unusually careful No. 12 2,472 2,347 2,420 2,425 2,541 2,293 2,382 2,469 study. They indicate a decline in total debits Total.. 41,598 41,375 39,779 39,910 36,334 37,195 40,503 to individual account. Total figures for the NOTE.—Monthly figures are prorated from weekly data shown each United States increased from 34.7 billions in month in the FEDERAL RESERVE BULLETIN. Caution is necessary in January, 1919, to 45.4 billions in December, their interpretation, as the number of reporting centers varies slightly. It should, of course, be understood that the 1919, this being the peak of the movement. decline in debits to individual account which The returns for January, 1920, at 45.1 billions is thus presented has no necessary relation to were nearly as large, but thereafter an almost the credit or "money" situation. The total continuous decline set in. The low point in the amount of bank deposits as well as the movement was apparently reached in August, volume of notes in circulation have been slowly 1920, with 36.3 billions, since which time manor on the increase within recent months. The fig- advances have taken place. It should be re- called, however, that the organization of the ures showing debits to individual account to which reference is made herein are essentially New York Stock Exchange clearing house has 7 to some extent altered the reports from dis- figures showing a "turnover ' of credit, or con- stitute a factor in what economists describe as trict No. 2. These facts may be more clearly 7 set forth in a table designed to show the move- "velocity of circulation/ They indicate not

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the total amount of credit which is available tion is therefore in some measure responsible for the use of the individual or business estab- for the slowing down of the export trade of the lishment, but the decrease in the activity with United States, and illustrates once more the which such credit has been used by its owners. necessity of action designed to bring about The downward trend of exchange during 1920 soundness in international financial relations. Production appeared to have reached the Another phase of present conditions which de- and foreign ex- low point toward the middle of serves particular attention is seen in the fact change. November, when sterling was that as things stand the amount of our exports quoted below 3.40. As may be seen from the would seem to be quite closely conditioned upon graphic representation already published in the the amount of our imports. As our banking last issue (p. 1159), the movement of practically and mercantile credit situation becomes more all European exchanges has been steadily down- and more saturated with foreign credit, or, in ward and practically on parallel lines since early other words, reaches a position where it is dif- in the year. The sharp depression which was ficult to extend any more accommodation— brought about in the early part of November certainly no more long-term accommodation— was attributed by experts to the necessity of to foreigners, the natural inference would seem financing considerable quantities of grain and to be that current and future shipments of cotton bills growing out of the shipments of this our goods abroad would be paid for in very year's products at a time when, as already large measure with contemporary shipments of pointed out in former issues, there was a very goods to this country. Such a situation is large outstanding indebtedness on the books of evidently developing, as is sem in the study foreign banks and business houses, which re- of foreign trade already presented. The facts sulted in creating an overhanging supply of ex- as thus set forth afford a satisfactory explana- change, which was at times "dumped" in the tion of the steady increase in our importations market whenever a slight upward trend sug- from abroad and furnish a warrant for the gested the possibility of converting foreign cur- opinions of those who have believed that there rencies into dollars at even a tolerably favorable would be a larger movement of goods into the rate. This, of course, was a situation primarily United States as the result of the extensive applicable only to European exchanges. Nev- credits which have in the past been granted ertheless, in relations with South American foreign countries. countries the situation was equally unfavorable, Price movements have already been inci- due to conditions already set forth and includ- dentallv referred to as a factor ing depression of prices as well as the disturb- Prices and ™ ,. " ,. , , ml anecting readjustment. The ance of our foreign trade relationships with t d remarkable changes of 1920, those countries. In a general way it may however, require some special attention. In be said that the year 1920 has been a period of the case of wholesale prices, readjustment has practically steady deterioration in exchange occurred in a more striking fashion than in per- conditions, as reflected in the constantly growing haps any other field. In January prices in the open balances in favor of the United States United States stood at 242 per cent of the pre- which are being carried in an increasingly large war level, according to the Federal Reserve list of foreign nations. Board index number. They continued to Foreign exchange conditions during the year advance until April, when the index number 1920 throw interesting light upon the bearing stood at 263. May prices were at approxi- of exchange rates on international trade. mately the same high level, but since that time They show that abnormally low quotations of the decline has been quite considerable. By foreign currencies tend to reduce the export October the Board's number had fallen to 208, shipments of the nation, particularly when showing a decline of 21 per cent from the peak. these low quotations are the result of unpaid More or less similar readjustments have been balances which give rise to a quantity of ex- made in foreign prices during the same period. change that may be thrown upon the market British prices reached their peak in April at any given moment. The exchange situa- and have been on the decline since then, the

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reductions in the past two months being goods on home markets, have been the prin- especially noteworthy. Canadian prices have cipal factors of the transition period in our shown tendencies very similar to those in the dealings with South America. In order to United States. In the drop in prices remedy these conditions desire has been ex- has been more extreme, the difference between pressed in various South American countries the March and October index numbers amount- that loans in their favor shall be floated in our ing to 30 per cent. market. The extent to which such expecta- and Italy show somewhat different tions might be satisfied wrould depend very fluctuations. In both countries prices reached largely, of course, upon the degree in which their peak in April of this year, receding from the credit thus to be extended actually fur- these high points during the next two months, nished a means of effectually paying current but increasing again recently. But even in obligations. The real point of the situation these two cases the index numbers are atis that many of the South American countries slightly lower points than last spring. In the which produce staples, such as sugar, coffee, following table are presented index numbers rubber, and others which have greatly fallen for January, April, and October: in price, find themselves without the means of meeting obligations which they had con- Wholesale price indexes. tracted on the assumption that their commodi- [Average prices, 1913=100.] ties would command a much higher price,

Jan., 1920. Apr.,1920.!Oct., 1920. or, in other words, they find the sale of these articles slow in the United States because of United States 242 263 ! 208 the slackening of demand for goods which has . 288 313 282 France 487 584 ! 503 left many concerns more than fully equipped Italy 504 679 i 665 Sweden 319 354 i 346 with quantities of raw material. The South Canada 248 261 1 234 Japan 301 300 ! 226 American countries are thus, through a combi- India 218 200 i 206 203 217 ! nation of special circumstances, placed in somewhat the same position as the nations of Within the past month further developments Europe. They lack paying power because what in South American trade have they have for sale is for the moment not suffi- Commerce with -, IT, I , i c ., . . occurre d which tend to emphar - ciently high priced and not sufficiently salable ooutn America. . to enable them to equalize their trade balance size the real character of our with the United States. The situation for the foreign trade problem. A moratorium had al- time being is thus similar to that of such ready been declared by Cuba on October 10 and European countries as are riot as yet in position has been in effect ever since then. Meanwhile to export in any degree or are insufficiently other moratoria or what amounts to such a sus- prepared to meet their recurring interest pension have been put into effect in several of obligations and pay for their current importa- the So th American countries, notably in Para- tions from the United States. The decline guay. The immediate cause of trouble has of prices thus exerts an unexpected influence been found in the rapid decline of staple prod- upon our foreign business by limiting the field ucts, such as sugar, hides, rubber, coffee, wool, of our markets in those countries from which and other chief exports, while the demoraliza- we draw staples which have suffered the most tion of exchange rates upon the United States severe recession as a result of recent altera- has made it difficult, in some cases next to im- tions in the price level. possible, for South American importers to pur- chase dollars with which to pay for their North During the month ending November 10 the American importations and yet leave them- net inward movement of gold Gold and sil- $ ,519,000. as compared selves in position to dispose of the goods at ver movements. w&. g ' 62 ' , L prices which will appeal to the community. with a net inward movement Decline in prices, lack of stability in exchange, of $56,503,000 for the month ending October and consequent inability to sell imported 10. Net imports of gold since August 1, 1914,

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were $816,229,000, as may be seen from the Mexico furnished $2,288,000, or almost one- following exhibit: half, and Peru $1,038,000 of the $4,645,000

[In thousands of dollars.] of silver imported during the monthty period ending November 10, most of the remainder Excess of imports coming from , Bolivia, Honduras, and Imports. Exports. over exports. Canada. Of the silver exports, amounting to $4,927,000, about 45 per cent, or $2,246,000, Aug. 1 to Dec. 31, 1914 23,253 104,972 i 81,719 Jan. lto Dec. 31, 1915 451,955 31,426 420,529 was consigned to Japan, $1,555,000 to China, Jan. lto Dec. 31, 1916 685,745 155,793 529,952 Jan. lto Dec. 31, 1917 553,713 372,171 181,542 and the remainder principally to Hongkong, Jan. lto Dec. 31, 1918 61,950 40,848 21,102 Tan. 1 to Dec. 31, 1919 76,534 368,185 1291,651 Mexico, and Canada. Jan. lto Nov. 10,1920 333,775 36,474 297,301 Substantial credit liquidation and some de- 816,229 Total 2,186,925 1,370,696 The banking crease in borrowings from Fed- i Excess of exports over imports. situation, eral Reserve Banks are the salient features of developments in the bank- England furnished $82,053,000, or over 86 ing field during the five weeks between October per cent, and France $5,571,000 of the $95,060,- 15 and November 19, as indicated by the 000 of gold imported during the monthly weekly reports of about 825 member banks in period ending November 10, Columbia, Canada, leading cities. Sweden, Australia., and Mexico furnishing most As against an increase of over 11 millions in of the remainder. Of the gold exports, the holdings of United States war securities amounting to $32,541,000, over 85 per cent, or proper, i. e., Liberty bonds and Victory notes, $27,942,000, was consigned to Japan, $3,000,- the reporting banks show a reduction of 16.4 000 to China, and the remainder principally to millions in their holdings of Treasury cer- Hongkong, Mexico, and Canada. Since the tificates, notwithstanding the substantial in- removal of the gold embargo on June 9, 1919, crease in these holdings shown on November 19 total gold exports have amounted to approxi- following the most recent certificate issue. All mately $651,097,000. Of this total, $174,407,- classes of loans show considerable reductions— 000 was consigned to Japan, $146,555,000 to loans supported by Government war obliga- , $69,330,000 to Hongkong, $67,396,- tions by about 30 millions, loans supported by 000 to China, $40,812,000 to British India, corporate securities by about 120 millions, and $29,778,000 to Spain, and the remainder prin- all other loans and investments, composed cipally to Mexico, Uruguay, the Dutch East largely of commercial loans and discounts, by Indies, the Straits Settlements, Canada, and 336 millions. Total loans and investments on Venezuela. November 19 stood at 16,794 millions, or about During the same monthly period the net 490 millions below the total shown five weeks outward movement of silver was $282,000, as previous. Member banks in compared with a net inward movement of show larger liquidation of loans secured by ' $1,308,000 for the month ending September 10. corporate obligations and a reduction of 287 Net exports of silver since August 1, 1914, millions in total loans and investments. Ac- were $454,571,000, as may be seen from the commodation of all reporting institutions at the following exhibit: Federal Reserve Banks during the first three [Tn thousands of dollars.] weeks under review fluctuated within moderate limits, reaching a high of 2,278 millions on Excess of exports November 5. During the following two weeks Imports. Exports. over imports. these banks were able to reduce their loans from their Reserve Banks by 159 millions, or Aug. lto Dec. 31. 1914 12,129 22,182 10,053 Jan. 1 to Dec. 31, 1915 34,484 53,599 19,115 to 12.6 per cent of their total loans and invest- Jan. 1 to Dec. 31, 1916 32,263 70,595 38,332 Jan. lto Dec. 31, 1917 53,340 84,131 30,791 ments, compared with 13 per cent on October Jan. lto Dec. 31, 1918 71,376 252,846 181,470 Jan. lto Dec. 31, 1919 89,410 239,021 149,611 15. For the New York City banks this ratio Jan. 1 to Nov. 10, 1920 79,856 105,055 25,199 continued practically unchanged at slightly Total. 372,858 827,429 454,571 i over 14.5 per cent.

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For the five weeks between October 22 and circulation, after a practically continuous November 26 the Federal Reserve Banks show reduction during the first four weeks of the a decrease of about 14 millions in their holdings period, resumed its upward trend during the of discounted paper. Holdings of acceptances following week, with the result that the Novem- purchased in open market declined from 300.7 ber 26 total'of 3,325.6 millions shows a further to 247.7 millions, liquidation of this class of expansion of 18.2 millions for the week, though paper being heaviest during the second part of a reduction of 30.6 millions since October 22. November, when in consequence of the lower Gold with foreign agencies shows a further call-money rates the investment demand for reduction from 80.4 to 70.2 millions, the latter 7 prime bankers acceptances largely increased. total including 3.3 millions of gold held "ear- Fluctuations in the totals of Treasury certifi- marked ;) for account of the Federal Reserve cates held reflect chiefly the amounts of special Banks by the Bank of France. Total gold certificates held by the Reserve Banks to cover reserves, as the result of further net gold advances to the Government pending collection imports, mainly from Great Britain, reached a of funds from depositary institutions. The total of 2,023.9 millions, a gain for the period total of such special certificates reached the of 29.3 millions, while total cash reserves show high figure of 64 millions on November 19, an even larger gain for the five weeks from following the large disbursements of the Gov- 2,157.3 to 2,195.3 millions. ernment in interest payments and in the The banks7 reserve ratio shows a decline redemption of loan certificates, but declined to between October 22 and November 5 from 21 millions by the following Friday. A considerable decrease is shown in the 43.3 to 43 per cent. During the following volume of interbank rediscounting, the total weeks, because of the considerable reduction in of paper held under discount for other Reserve note and deposit liabilities and the gain in Banks by the , Philadelphia, and reserves, the ratio rose to 44.4 per cent, which Cleveland banks showing an almost continuous is only 1 per cent below the maximum shown reduction from 243.1 to 154.1 millions. On for January 9 of the present year. November 1 the Atlanta bank abolished its The usual quarterly session of the Fed-eral graduated discount rates and raised its rate Reserve Board with the Federal Meetings of Adyi Council occurred on on 90-day paper to 7 per cent. This change the month. AT / ... apparently has not yet had any effect upon the November 15. Light districts volume of discount operations, total discounts were represented, those not so represented of this bank showing a nominal increase be- being New York, San Francisco, Dallas, and tween October 29 and November 26 from 176.8 Kansas City. The session was devoted to a to 177.2 millions, while rediscounts with other general consideration of credit and banking Reserve Banks increased meanwhile from 36.1 conditions as existing at this time throughout to 40.2 millions. For the three Reserve Banks the country, and the reports showed a reassur- of St. Louis, Kansas City, and Dallas, which ing condition of soundness as well as con- continued to apply graduated rates during currence on the part of those present in the November, a reduction of total discounts from credit policy which is being followed by the 429.1 to 378.9 millions, as against a reduction reserve system in general. from 115 to 67.9 millions in bills rediscounted During the month sessions of the special with other Reserve Banks, is seen. committee of the Federal Reserve Agents, Net deposits show but a moderate change nominated at the annual conference in October, since October 22, the November 26 figure of for the purpose of considering general ques- 1,623.6 millions being only one million below tions relating to business conditions reports the October 22 total. Federal Reserve note have been in progress.

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BUSINESS, INDUSTRY, AND FINANCE, NOVEMBER, 1920. The month of November has continued the business" during the past month, but while period of readjustment in business. Prices have factories have in many instances closed or continued their decline, the Board's general reduced their time, "the retail trade is now index showing a net loss for the month of 18 making an encouraging beginning" in read- points. The activity of manufacturing in many justment and "a ready response" to lower lines has been still further reduced and there has prices is manifested. been some increase in unemployment. There In district No. 4 (Cleveland) "th,e physical has been a corresponding reduction of buying difficulties that have tended to interfere with power which is reflecting itself in a noticeable production have largely disappeared" and the way in a lessening in the volume of trade, chief obstacle to progress is found in the failure particularly in the volume of wholesale trade. to bring about a thorough readjustment of While business failures have continued to in- prices. Iron and steel demand has been crease as compared with a year ago, the total "tapering off." growth in assets of failed concerns has been In district No. 5 (Richmond), despite reduc- moderate. Banks have been able to extend tion in prices and improvement in transporta- credit in reasonable volume, with the result tion, the month has shown "no pronounced that losses due to shrinkage of inventory values developments." have been carried without producing an undue In district No. 6 (Atlanta) agricultural measure of commercial embarrassment. In conditions have continued favorable through- the agricultural regions an outstanding feature out the district despite some shrinkage in of the month has been the retardation of the yield as compared with previous prospects. movement of products to market, which has Coal production has increased and there has resulted in a slowing down of collections and been a beginning toward the more systematic in a reduced liquidity of commercial paper. financing of the export trade. In some of the leading agricultural States In district No. 7^ (Chicago) "indices of busi- bank failures have been reported. The general ness conditions point to a considerable let- opinion of bankers and financiers is to the down in general activity." Uncertainty pre- effect that the process of readjustment has vails in many lines, while failure to bring about been kept under control and has produced as greater uniformity in prices is an obstacle to little economic disturbance as might reasonably recovery. There is a lowering of cost of pro- have been expected. It is impossible to esti- duction and a reduction in the volume of mate the extent to which the completion of employment. the readjustment process may involve further In district No. 8 (St. Louis) the tendency of slackening of employment or the increase of business has been to slow down, with the commercial embarrassments. Favorable ele- readjustment movement gaining considerable ments in the immediate situation are the momentum. The price recessions have given improvement in transportation conditions and rise to some hesitation and uncertainty both the easing of credit conditions. Freight con- on the part of merchants and the public. gestion is reported practically at an end and The yields of the leading agricultural products both staples and coal are moving steadily to were large and "fall farm operations have market as shipped. progressed well." In district No. 1 (Boston) there is an "unmis- In district No. 9 (Minneapolis) the grain takably widespread curtailment of produc- movement has continued favorable and the tion," but the money situation is reported physical volume of trade increased as com- satisfactory. pared with September, although less than a In district No. 2 (New York), while price year ago. Prices have still further declined, declines and cancellation of orders have con- but financial conditions continue stable. tinued with "substantial interruptions and In district No. 10 (Kansas City) the month readjustments in many industries/' the orderly has shown no "decided change in the tendency manner in which these readjustments have toward a general readjustment of business." proceeded "has been greatly facilitated by the Agricultural and other prices have fallen off existence of the present machinery for the there as elsewhere. maintenance of credit flexibility." The vol- In district No. 11 (Dallas) the general move- ume of credit demand is falling off. ment was a continuance of that of the preceding In district No. 3 (Philadelphia) there has month, with further shrinkage in wholesale been "little change in the general condition of trade but with impr vement in retail trade and

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collections. The sowing of winter wheat has the open cotton goes through a period of sun increased and the movement of cotton has bleaching to remove the effects of weather become heavier. damage." In south Texas the harvesting of In district No. 12 (San Francisco) agricul- what is said to be the largest cotton crop on tural prospects are favorable and the move- record in that section is nearing completion. ment of products to market is proceeding Cotton picking is finished in Florida, and nearly normally. Retail trade is larger than last so in Alabama, South Carolina, Mississippi, year or than during the preceding month. and Louisiana, but in upper Georgia the boll Some industries show curtailment, especially weevil has increased 50 per cent. In Okla- lumber and mining. General conditions in homa "the fields are still white with unpicked the district are still reasonably good. lint and less than half has been picked thus Harvesting of this year's large crops is near- far." Opening of the bolls and picking have ing completion in most sections. Favorable been retarded, but picking has been resumed, weather nas aided materially in maturing and with the supply oi pickers still inadequate. harvesting the crops. The rains which have Throughout the cotton section it is reported been general have left the soil in good condition on the whole that there has been a heavily in- for seeding. In district No. 9 (Minneapolis) creased movement of cotton, but in district about 21 per cent of the corn is going into No. 5 (Richmond) a tendency has developed silage, while Montana is utilizing about 35 per toward the forming of a crop-holding move- cent of its acreage for forage and fodder and ment. The number of bales of cotton ginned about 6 per cent for grazing. As frost did not prior to November 1, 1920, is considerably appear until late, the corn is practically ma- larger than for the corresponding period last tured with very little damage. Some injury to year, the figures being 7,471,352 bales for corn is indicated in the unharvested lowland 1920 and 6,305,054 bales for 1919. fields of Oklahoma, due to heavy rain. In all Receipts of live stock continue much lighter sections corn is of good quality. Seeding of than last year, and the downward trend of winter wheat in district No. 8 (St. Louis) "is live-stock prices in general continues. Receipts practically completed, and the early sown of cattle and calves at 15 western markets grain has made good growth and* is in fine during October were 1,628,564 head, corre- condition to enter the cold weather.'; On the sponding to an index number of 162, as com- Pacific coast "timely rains during October and pared with 1,736,009 head during September, early November have facilitated extensive corresponding to an index number of 172, and sowing of winter wheat and have replenished 2,317,487 head during October, 1919, corre- power and irrigation reservoirs." sponding to an index number of 230. Receipts While the production of tobacco this season of hogs during October were 1,836,748 head, is exceptionally heavy, there is more than as compared with 1,597,622 head during usual of the low grades due to damage of September and 2,160,079 head during October, different kinds. In Kentucky from 15 to 25 1919, the respective index numbers being per cent of the Burley crop will be more or less 84, 73, and 98. October receipts of sheep were affected, while in Tennessee the color is bad slightly less than during September, being and the quality is rather low. It is generally 1,865,330 head as compared with 1,893,312 reported that the farmers are dissatisfied with head, and 2,405,511 head during October, 1919, the price of tobacco, and this has manifested the respective index numbers being 136, 139, itself in a tendency toward slower marketing. and 176. In all markets of district No. 10 The opening of the Burley tobacco markets, (Kansas City), "with the exception of a heavy which usually occurs early in December, will run of feeder lambs from Utah and Nevada to probably be postponed until after the first of Colorado and eastern feed lots, the receipts of the year. Manufacturers of tobacco in district live stock have been light." At Fort Worth, No. 5 (Richmond) report a slowing of demand October receipts of sheep .since 1910 have not from both domestic and foreign buyers. The been as small as they were this year. Heavy weather generally has been favorable to the runs of live stock in district No. 9 (Minneapolis) picking of fruits on the Pacific coast, and the are indicated from the West, and grass fed rains have helped to size up the fruit. Car- cattle predominated at all times. The quality load shipments of navel oranges are already of cattle received at South St. Paul is reported moving out of northern California. as the poorest for a number of years. From In district No. 11 (Dallas) the heavy rains that district it is stated that "the demand for in some sections have slowed up cotton picking stock cars in the West has been very heavy, and some damage has been done to the open and serious complaint has been made of short- cotton. "In many localities it is reported that age in some places." All live-stock prices, picking operations will not be resumed until except lamb and mutton, declined in that

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market in October and the declines continued (Kansas City) fairly characterizes the situation into November. Downward price movements throughout the grain belt as a whole: "The re- continued to feature the course of trade in ports seem to indicate that a larger proportion district No. 11 (Dallas), although the market than usual of farmers are holding wheat for steadied toward the end of the month. While marketing in the winter and spring or for higher the limited supply of good corn fatted killers prices, though it is apparent that many farmers held prices to the highest levels of the year in are inclined to let as much of their wheat go at district No. 10 (Kansas City), prices of all prevailing prices as will enable them to meet butcher grades were depressed during the early their financial obligations." part of October, although subsequently rising, Milling activity in district No. 10 (Kansas and the price of hogs reached the lowest figure City) has decreased on account of the slow de- of the year. Live stock in all sections is gen- mand for flour. Mills in the district operated erally reported in excellent condition. In at 62 per cent of capacity during October, as district No. 10 (Kansas City) "range and against 86 per cent in October, 1919. Simi- pasture conditions continue better than for larly, mills in district No. 9 (Minneapolis) are some years past because of general rains.'' operating at about 50 per cent of capacity, as The abundant hay crop gives additional prom- against about 75 per cent last year, although ise of winter and spring feeding, but up to the the output during the five weeks ending Octo- present time less stocks are reported as going ber 30 was 28 per cent larger than during the to feed lots. In district No. 11 (Dallas) the five weeks ending September 25. Flour move- ranges in Arizona, New Mexico, the Panhandle, ments were likewise greater in October than in and southwest Texas show a general trend September, although considerably less than toward improvement as a result of heavy rains, during October, 1919. Combined shipments and the stock water supply has been replen- from Minneapolis and Duiuth during October ished. were 2,378,773 barrels, as compared with In point of volume the movement of grain to 1,834,189 barrels during September and market has been practically the same as last 3,481,899 barrels during October, 1919. Fluc- year, although the total crop is larger this year. tuations in wheat prices at Kansas City had a In California, however, the decreased acreage somewhat depressing effect on milling activity. during the season just past has been considered Heavy purchasing of flour was absent, even as the cause of low receipts, together with the though prices were weaker, but there was a long threshing season due to heavy rains, and the slight improvement at the end of the month. receipts are below those of last year. A factor Flour prices have generally followed the trend in the present situation has been the continued of the wheat market, hard wheat patents on decreases in the prices of the various grains. November 6 being quoted at Kansas City at Thus in Minneapolis, No. 1 dark northern cash $10.50 to $10.70, as against $11.30 to $11.45 on wheat was quoted on October 30 at $2.13J to October 2. Business in St. Louis is of a hand- S2.17J as compared with $2.35§ to $2,454 on to-mouth sort, particularly in the south. Mill September 30. In district No. 10 (Kansas City) operation in the district from the middle of the receipts of w^heat during October, while October on ranged from 40 to 50 per cent of slightly larger than last year, showed a 20 per capacity. cent decrease from the heavy marketings in "The dominant feature of the bituminous September. While this is attributed largely to coal business," states the report from district the drop in prices, it is recalled that the slump No. 3 (Philadelphia), "is the fact that the situ- in wheat receipts between September and Octo- ation has turned, with rather startling rapid- ber in 1919 was about 40 per cent at the markets ity, from a problem of production and trans- of these districts. In Minneapolis total receipts portation to a question of markets." Prices of all grains during October, amounting to are declining, the curtailment of industrial 25,367,870 bushels, were 6 per cent larger than activity in some industries has cut down con- in September and about 17 per cent larger than sumption, and the demand for export tonnage in October, 1919. Indications point to a speed- has fallen off considerably. Production in ing up of the movement in the case of wheat general has been well maintained throughout and flax. Wheat receipts during October were the country, amounting to 50,744,000 tons dur- an increase of about 20 per cent over Septem- ing October, as against 51,093,000 tons in ber, while receipts of flax more than doubled. September and 56,243,000 tons in October, "A year ago there was great difficulty in secur- 1919, the respective index numbers being 137, ing railroad equipment with which to move the 138, and 152. In spite of the several holidays grain. Complaints of difficulty in securing cars during November, production in general con- this year have been few and widely scattered.'' tinues at a high level. The reports to the The following statement from district No. 10 United States Geological Survey of loss of

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time on account of absence of market, however, ing new fields, causing a lull in developments, indicated recently that "in general it may still although stocks are now increasing slightly. be said that the market is sufficiently active Production in Oklahoma and Kansas during to absorb all the coal offered for shipment," October was 12,768,125 barrels, as compared the only losses from this cause being west of with 12,023,250 barrels during September. the Mississippi. From Kansas City it is stated Production in district No. 11 (Dallas) during that while the demand for steam coal has sof- October was 12,280,197 barrels, an increase of tened to some extent since September, there 790,687 barrels over the figure for September. has been no radical change in prices. In Ala- " A marked improvement in drilling results was bama production has steadily increased in a noticeable feature in the district's oil indus- spite of the fact that the strike is still on in try." Wells completed during October in dis- that field, and production is now only 25,000 trict No. 10 (Kansas City) numbered. 1,060, tons under the usual output. The price of with a daily production of 95,738 barrels, as coke, both furnace and foundry, has fallen compared with 1,048 wells in September, show- greatly. The market is characterized from ing a daily production of 83,917 barrels. district No. 3 (Philadelphia) as " sluggish," and In the face of falling prices and declining production in district No. 4 (Cleveland) has demand, production of iron and steel has fallen off somewhat. From district No. 6 (At- been further curtailed. These tendencies lanta), however, it is stated that prices "show have been noticeable, in particular in the case but little change." Production of anthracite of the independent producers. Many com- coal during October amounted to 7,645,000 panies have recently been operating at about tons, corresponding to an index number of 103, 50 to 75 per cent of capacity, while some as compared with 5,125,000 tons during Sep- plants of special character, such as those pro- tember and 8,459,000 tons during October, ducing material required by the automobile 1919, the respective index numbers being 69 industry, are on an even lower basis. At the and 114. There was a much sharper decrease close of October, 28 more furnaces were idle in output at the opening of November than in than at the opening of the month, and this the case of bituminous coal. Production to date has been considerably increased during No- is 3,750,000 tons less than last year, although vember. Consumers are hesitant, and operate prior to the strike it was 200,000 tons ahead on a hand-to-mouth basis. Specifications on of the output for the corresponding period of existing contracts are more sluggish. Prices the previous year. A noticeable return to the of pig iron have declined, being closely related anthracite mines of men who had drifted into to the decline in the price of coke. Lower other industries is reported from district No. prices are reported in the warehouse steel 3 (Philadelphia). Trade sources state that market. There has been a tendency to reduce independent operators still obtain "fancy the spread between quotations of independent prices." With respect to the situation regard- mills and the minimum schedule. Exceptions ing fuel for domestic use, householders' bins in are tubular goods, for which there is a heavy district No. 8 (St. Louis) are rapidly being demand, and wire products, which are less filled, while in district No. 5 (Richmond) there active but are holding firm. A noticeable de- appears to be plenty of coal available for crease in the demand for wire rope during the houses, although public utilities are operating past four weeks is reported from district No. on narrow margins. 3 (Philadelphia), due to a falling off in drilling In district No. 10 (Kansas City) it is reported operations and the condition of the lumber that uncertainty was felt during October con- industry in the Northwest. Interest has cen- cerning the prices of refined petroleum prod- tered recently in the announcement of the ucts. The demand for fuel oil from factories leading interest that no changes would be and steam plants is increasing, while the recent made in its minimum quotations under present slump in the demand for kerosene is giving conditions, and the announcements by leading way under a stronger domestic demand for independents of prices based on the minimum use in heating stoves. Gasoline is showing schedule. Structural steel orders during Oc- weakness because of large stocks laid in before tober were only 25| per cent of capacity, and the recent change in freight rates and a dispo- were the smallest since April, 1919. Conditions sition on the part of certain refiners to make in the industry are reflected in the decline prices wind1 will move gasoline, rather than to in the unfilled orders of the United States hold it in stock. The retail tank station busi- Steel Corporation, which amounted to 9,836,852 ness this year to date is reported as about 40 tons at the close of October, correspond- per cent larger than last year in the district. ing to an index number of 187, as compared Apprehension is also reflected among operators with 10,374,804 tons at the close of Septem- and refiners over lack of interest in prospect- ber, corresponding to an index number of 197.

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Both pig-iron and steel-ingot production dur- in October was 133,140 bales, or 15,302 bales ing October, however, were greater than dur- less than in September. The amount of cotton ing September, daily pig-iron production being held in the mills at the close of the month was somewhat larger and daily steel-ingot produc- 463,369 bales, or 68,084 less than reported for tion somewhat smaller. The figure in the case September. In district No. 5 (Richmond) of pig iron was 3,292,557 tons, as compared jobbers and retailers are said to be buying prac- with 3,129,323 during September, the respec- tically nothing. Cotton middling is selling at tive index numbers being 142 and 135. A 17 cents on the markets of North and South lesser increase was remarked in the case of Carolina. In district No. 3 (Philadelphia) no steel ingots, production rising from 2,999,551 change in the cotton-yarn situation during the tons in September to 3,015,982 tons in Octo- month has occurred. Apparently there is not ber, corresponding to index numbers of 124 sufficient buying demand to establish a market. and 125, respectively. District No. 1 (Boston) states that there is The nonferrous-metal industries are also pass- practically no demand for raw wool and con- ing through a period of small demand and sequently no stabilization of prices. South declining prices. Stocks of copper are reported American wools are somewhere around prewar large, and there has been curtailment of out- levels; domestic wools, although showing put by producers. Output of the metal in sharp declines from the peak prices, are never- district No. 9 (Minneapolis) during October, theless well above prewar levels. Curtailment according to reports from companies producing of production persists in woolen mills as in other about 75 per cent of the total output of the textile lines. It is said, however, that a cer- district, was 94 per cent of the September tain amount of buying has recently been done figure and 67 per cent of that in October, by woolen mills in district No. 1 (Boston), 1919. It is stated that a decrease in export although there is as yet no indication of re- demand has affected the volume of production. newed activity. District No. 3 (Philadel- Copper production in district No. 12 (San phia) asserts that demand for woolen yarns is Francisco) is about 60 per cent of normal, virtually nonexistent. Reporting firms are certain mines in Arizona having ceased opera- either closed or operating at reduced capacity, tions and others curtailed output. Lead has the maximum for any reporting concern being generally been believed to be in a somewhat 57 per cent of capacity. The goods are being better position than either zinc or copper. produced chiefly for stock. Producers in the Joplin district shut down their mills during the last two weeks of Octo- In underwear lines the situation is-similar. ber, the shutdown being the most complete District No. 3 (Philadelphia) says: "It is ever attempted in the district. Reports state doubtful whether more than 25 per cent of the that it is intended to run only three days a productive capacity of the mills in this district week, and as a result to do away with the is now being maintained." Statistics re- large surplus stock maintained in the district ceived from 20 reporting mills bear out this since last year. statement, as the value of the products manu- factured by these mills fell 12.8 per cent during The depression in the textile industries con- October as compared with September, while the tinues to manifest itself in further shutdowns latter month witnessed a decline of 27.5 per cent and more extensive curtailments of working from August totals. The value of the output time. It is difficult to estimate the percentage was 42.1 per cent less than in October a year ago. of capacity in operation, as mills are working Unfilled orders at the end of the month were not only below capacity but on part time and 71.2 per cent below the figures for a year ago, some are closed for indefinite periods. One whereas at the end of September they wTere large New Bedford cotton mill reports opera- 47.6 per cent below the amount for the cor- tions at only 20 per cent of capacity, anocher responding month of the preceding year. at 44 per cent, while one of the largest Lowell There were no records of orders booked during corporations is running 60 per cent of its ma- the month, and those already placed have been chinery for four days a week, and a large canceled to a great extent. Price revisions Maine mill is using 75 per cent of its machinery early in October were without effect and were at one-half to two-thirds time. General esti- discontinued. Carpet and rug manufacturers mates indicate that the cotton mills in district in district No. 3 (Philadelphia) are also faced No. 1 (Boston) are operating from 30 per cent with a similar situation—negligible current to 40 per cent of capacity and even so are manu- orders and extensive cancellations of those facturing largely for stock instead of being already placed. Many of these mills are engaged upon 'current orders. The United closed while a few are running at anywhere States Census reports that the amount of cot- from 25 per cent to 75 per cent of capacity. ton consumed in the six New England States Reports received directly from 39 hosiery

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firms in district No. 3 (Philadelphia') which sell Thus far there have been no indications of to the wholesale trade show a decline of 69 revival in the silk industry. The fact that this per cent in the selling value of goods manufac- is normally a dull peiiod of the year, together tured during the month of October as compared with uncertainty as to the outcome of the with October, 1919, while the value of finished attempts of the Japanese Government to products on hand at the end of the month is stabilize prices, are mentioned as factors that 98.2 per cent greater than a year ago, even at contribute to stagnation. Prices of raw silk in present selling prices. Unfilled orders on hand New York are said to be about the same as the (selling price) at the end of the month show a minimum established in Japan, Shinshu No. diminution of 85.1 per cent as compared with 1 selling for about $6.25 per pound. Stocks in October, 1919, and of 47.2 per cent as compared local warehouses are said to amount to about with the precedirg month. Orders are said to 50,000 bales. District No. 2 (New York) says consist principally of requests for a few num- that at Paterson, N. J., during the week end- bers to fill in broken lines. Operations are at ing November 8, a total of only 90,920 loom a low ebb and there are many complete shut- hours was achieved, or 8.6 per cent of the dowrs. Seven hosiery firms selling to the maximum possible on the basis of a 44-hour retail trade show reductions in value of output week. Bradstreets announces that there have of 50.4 per cent as compared with October, been 126 failures of small concerns in Pater- 1919. There was an increase of 46.1 per cent son, while about 150 plants are closed. in the value of finished products on hand at the Manufacturers of men's clothing have an- end of the month, while unfilled orders (at the nounced reductions varying from 33 per cent end oi the month) were 71.8 per cent less than to 50 per cent in the price of winter clothing. in September. Statistics of unfilled orders for Rochester manufacturers have shown spring October a year ago are not available but the lines at prices 25 per cent to 33 per cent reduction in September orders at the end of the below those for the fall and winter, but so far month as compared with September, 1919, was few orders have been placed. As makers of 71.6 per cent. women's suits and dresses have no surplus Reports covering the month of October have stocks, piices have not been reduced to the been received from 33 firms belonging to the same extent. National Association of Finishers of Cotton In the leather industry few changes have Fabrics. The total number of finished yards occurred during the month. No large orders billed during the month, including white goods, for future delivery are being placed, chiefly dyed goods, and printed fabrics, amounted to because of the lack of demand from boot and 46,233,000 yards as compared with 58,670,000 shoe manufacturers. In consequence, quota- yards reported by the same firms for Septem- tions for hides and skins continue to drop. ber. The average per cent of capacity in oper- Kansas City quotations on hides are below the ation for all reporting districts was 33, but in 1911-1914 average, while certain grades of district No. 1 (Boston) and No. 2 (New York) hides are at the lowest level reached since the returns averaged only 26 per cent and 27 1905. On November 12 No. 1 wet salted hides per cent, respectively. In district No. 3 (Phila- sold in St. Louis at 7 cents per pound, as com- delphia) the average rose to 53 per cent. The pared with 9 cents a month ago and 41 cents total average number of days of work ahead in 1919. According to the report from dis- for all reporting districts at the end of October trict No. 1 (Boston), however, several large amounted to 4.4 days, as compared with 6.9 tanning concerns have recently entered the days at the end of September. District No. 1 market and are stated to have bought con- (Boston) reported an average of 2.6 days of siderable quantities of raw stock. Tanneries work ahead; district No. 2 (New York) an in district No. 3 (Philadelphia) are being average of 5 days, and district No. 3 (Philadel- worked at greatly reduced capacity or else phia) an average of 6.8 days. are closed down. Twenty-seven representative mills reporting In district No. 1 (Boston) the boot and shoe to the Association of Knit Goods Manufac- industry is said to be not over 50 per cent turers had unfilled orders amounting to 137,685 normal, and although reports from a majority dozen at the beginning of October, as compared of concerns making returns show orders some- with 340,444 dozen on September 1. Produc- what larger than a month ago, they are prin- tion during October totaled 159,124 dozen, cipally for immediate sale. In district No. 3 whereas 250,316 dozen were manufactured in (Philadelphia) the situation is about the same. September. Shipments were 113,446 dozen in District No. 8 (St. Louis) says that shipments October, 228,089 dozen in September, while of boots and shoes in October and during the cancellations amounted to 25?668 dozen and first half of November were close to a year 26,089 dozen, respectively, ago, but new business had declined anywhere

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from 40 per cent to 75 per cent, as compared per cent, respectively, are recorded for 4 firms. with a year ago, and factory output had been Collections are reported to be about as satis- reduced from 25 per cent to 40 per cent. factory as they were a month ago. In district There is considerable complaint of returns and No. 6 (Atlanta) a decline has occurred in all cancellations. four lines for which reports are received, Further recessions in wholesale trade are namely, groceries, dry goods, hardware, and shown by the statistics compiled from the shoes, not only as compared with the pre- returns made by firms in eight of the twelve ceding month, but also as compared with Federal Reserve districts. As compared with October, 1919. The average declines in sales October a year ago, the declines on the whole of wholesale shoe firms dropped 36.4 per cent are much more general and much more pro- from the preceding month and 32 per cent nounced, except in the case of hardware and from the totals of a year ago, while the declines drugs. But even in hardware lines recessions for wholesale dry goods dropped 38.8 per cent have occurred in districts No. 6 (Atlanta) and and 46.2 per cent, respectively. In groceries No. 12 (San Francisco), amounting to 8.8 per the decline was slight as compared with Sep- cent with 9 firms reporting in district No. 6 tember, being only 1.3 per cent, but amounting (Atlanta) and 4.4 per cent with 23 firms re- to 26.1 per cent as compared with October, porting in district No. 12 (San Francisco). 1919. There is said to be little buying for On the other hand, increases in hardware sales spring requirements in any line reporting. In reported by districts No. 3 (Philadelphia), district No. 7 (Chicago) declines are recorded No. 4 (Cleveland), and No. 5 (Richmond) are as compared with October, 1919 for dry goods, slight as compared with returns for a year shoes, and groceries, amounting to 34 per cent ago, whereas in September they were con- for dry goods, 13 firms reporting, 32.6 per siderably in excess of the sales for the same cent for shoes, 9 firms reporting, and 15.2 per month of the preceding year. cent for groceries, 25 firms reporting. In dis- In wholesale groceries all reporting districts trict No. 10 (Kansas City) reductions in the except district No. 12 (San Francisco), show volume of sales for reporting grocery, hard- declines in October sales as compared with ware, and furniture concerns are found both October, 1919, while in the month of Sep- as compared with October, 1919, and with the tember only one district (Dallas) reported preceding month. In district No. 12 (San declines as compared with September, 1919. Francisco) all reporting lines showed declines In district No. 3 (Philadelphia) 20 wholesale in net sales as compared with September, hardware dealers report a negligible decrease the declines being greatest in automobile tires in the volume of net sales as compared with and dry goods, amounting to 18.8 per cent and September, but sales are still 6.7 per cent 17.5 par cent, respectively, while in wholesale above October, 1919. Total prices have not drugs and groceries the declines were only 1.3 changed greatly, but collections are somewhat per cent and 2.3 per cent. On the other hand, slower. Reports from 50 wholesale grocery although sales as compared with the pre- firms in district No. 3 (Philadelphia) show net ceding year were less in automobile tires, sales to be 11.1 per cent less than in Septem- shoes, dry goods, hardware, and furniture ber and 11.2 per cent less than in October, lines, increases were reported in stationery, 1919. It is stated that declines are general drug, and grocery lines, amounting to 21.9 and are not confined to a limited number of per cent in the case of stationery, 12 per cent establishments. In district No.. 4 (Cleveland) in drugs, and 9.6 per cent in groceries. Cur- declines in the volume of net sales of wholesale rent unfilled orders are reported to be much dry goods firms (4 firms reporting) and whole- smaller in the stationery business. sale grocery firms (3 firms reporting) as com- In retail trade the "reduction sales'7 which pared with a year ago amount to 27.5 per cent were prominent in some districts during Sep- and 10.8 per cent, respectively, while hard- tember became somewhat general during Oc- ware sales have been maintained, being 2 per tober, but in some sections these sales are still cent in excess of the levels of 1919. In dis- ''spotty." Cold weather in most sections has trict No. 5 (Richmond) decreases have been stimulated the buying of clothing, but in gen- especially heavy in wholesale dry goods, sales eral the usual seasonal demand is still lacking. being 40.5 per cent below September sales and There is generally reported a decided determi- 47.4 per cent below sales for October, 1919. nation on the part of the public to wait until Wholesale shoe lines, with 8 firms reporting, prices come down, and this is characterized by show declines of 16.3 per cent as compared some as a "consumers' strike." Stores gen- with September and of 36.3 per cent as com- erally are reducing stocks and making no pared with, a year ago. In furniture lines, attempts to replenish them. Outstanding or- however, increases of 7.5 per cent and 12.2 ders are declining, and retailers are ordering

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only what is needed to meet day-to-day re- been made on the same scale as in wholesale quirements. While prices are slowly but trade. generally declining, it is still felt that present So far there is no evidence of a revival of declines have not paralleled declines in whole- activity in the lumber industry, as contracts sale prices. ''Shoppers'7 are confining buying continue to fall off and new orders to decline to necessities and staples. There is a tendency in volume, despite price recessions. In dis- for retailers, according to the majority of re- trict No. 1 (Boston) some lumber mills have ports, to endeavor to realize on goods at as closed down entirely and curtailments are gen- near the present level of prices as possible. eral in the absence of demand. Prices are said The holiday trade is generally expected to to be from 25 per cent to 40 per cent below move a considerable part of the present stocks. previous levels. In district No. 6 (Atlanta) a The volume of trade in general has been better number of mills are closed, shipments are ex- oiaintained in the case of department stores ceeding orders and production, and stocks are bhan in the case of stores dealing in special being reduced in consequence. The 143 mills commodities only. The volume of trade during belonging to the Southern Pine Association re- October as compared with October, 1919, porting from district No. 6 (Atlanta) have a differs somewhat in the different districts. In normal weekly production of 90,837,000 feet, district No. 1 (Boston) there is no change, but but the output for the week ending October 29 in district No. 2 (New York) it has increased, was only 58,665,000 feet, or 35.4 per cent be- and likewise in district No. 6 (Atlanta), with low normal, while shipments amounted to the exception of the city of Atlanta. In dis- 60,939,000 feet and orders,' 44,673,000 feet. trict No. 10 (Kansas City) a decrease of 1.03 District No. 8 (St. Louis) estimated on the per cent is shown, and in district No. 9 (Minne- basis of data on hand that 50 per cent of the apolis) a decrease of 3.2 per cent, while in mills in the Mississippi Valley had closed. district No. 11 (Dallas') the increase is roughly The market for hardwood wras reported to be 16 per cent, and in district No. 12 (San Fran- inactive and there was a great spread in prices cisco), 8.2 per cent. for yellow pine. In district No. 9 (Minneap- October and early November price changes olis) special reports from 13 lumber manufac- were more general a* d extreme than for any turers giving cut, stocks, and shipments show other period since the readjustment in prices that lumber cut and shipments declined while commenced. The Board's index number regis- stocks increased. There has been a marked tered 208 in October as compared with 264 in decrease in unfilled orders. The combined May, when prices wTere at their peak, and 226 statistics (given in thousands of board feet) in September. The radical change between are as follows: September and October was due to the weak- ening in iron and steel prices, which had pre- Per cent, Per cent, viously remained firm, and the more extreme Septem- October October, October, i October. 1920, of revisions m cereal, textile, lumber, and non- ber. of Sep- 1919. October, ferrous metals prices. By November 20 re- tember. 1919. ductions had been made in bituminous coal prices, and here and there cement, brick, and Lumber cut | 23,882 24,853 98.1 99.5 Stocks I 154,622 141,431 109.2 134,478 115.0 paper showed signs of weakening. Instability Shipments | 11,260 16,602 67.8 28,338 39.7 of price was marked in practically all commod- ities during this period. Even in those in- dustries where large reductions had been made Thirty-two reporting mills in district No. 11 earlier in the year there was apparently little (Dallas) belonging to the Southern Pine Asso- confidence in existing values. Where the re- ciation, which have a normal weekly output of vision in prices has only just begun this feeling 20,116,000 feet, reported an average weekly of uncertainty is equally prevalent. Industrial cut of only 12,058,000 feet for the four-week inactivity accounts in large measure for the period ending October 29, and shipments revisions" in coal, iron and steel, and other amounting to 11,982,000 feet. Unfilled orders metal prices. The decline in export trade is at amounted to slightly more than two weeks' least in part responsible for the tall in prices of normal production, or 43,101,000 feet. Re- cereals, meats, cotton, lumber, and copper. ports from the four associations of lumber Surplus stocks in such lines as wool and copper producers in district No. 12 (San Francisco) have helped to bring about the revisions in show continued inactivity in the industry. It these commodities. is stated that railroad buying, principally of Although all reports indicate that retail ties, and California requirements constituted prices in particular lines have been cut, it is the principal items for northwestern lumber. generally admitted that revisions have not Figures of cut, shipments, and orders (in

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thousands of board feet) of the associated mills 1919. In Philadelphia the value of building in district No. 12 were as follows: permits was $4,840,000 in October, 1919, and $2,590,000 in October of this year. In district West Coast Lumber- Western Pine Manu- No. 4 (Cleveland) building permits for new men's Association. facturers' Association. construction amounted to 479 in number, with a total value of $6,028,000, in October, I Four weeks Four weeks I ending Preceding ending Preceding 1920, whereas 2,596 permits were issued in Oct. 23. four weeks. Oct. 23. four weeks. October, 1919, with a total value of $13,- 869,000. Permits for repairs and alterations Average number I 120 123 36 32 were slightly in excess of those for 1919 in point of value. Declines in the valuation of Cut 274,685 286,440 103,806 102, 763 Shipments 235,356 233,220 53,745 65,340 permits have been general in district No. 5 Orders 213,315 202,008 32,625 33,075 (Richmond), as compared with a year ago, the totals for new construction and repairs in 22 California White and cities of the district being $8,504,000 in Octo- Sugar Pine Manufac- California Redwood turers' Association. Association. ber, 1919, and only $4,453,000 in October, 1920—a drop of 47.6 per cent. In permits for alterations there was a slight increase, from Four weeks Preceding Four weeks Preceding ending four weeks. ending four weeks. $1,178,000 to $1,409,000. In district No. 6 Oct. 23. Oct. 23. (Atlanta) decreases in the valuation of per- mits are reported from a majority of cities Average number 8 8 10 10 from which returns are secured. Of the 33 Cut . 38,821 43,529 24,906 26,029 cities reporting in district No. 7 (Chicago), Shipments 14,336 17,113 16,059 17,626 only five show an increase in the value of per- Orders 9,185 12 789 22 605 19,388 mits as compared with October, 1919, the de- crease being in excess of 60 per cent in the Furniture factories in district No. 5 (Rich- majority of cases. Very little building is mond) are receiving few orders. They are in progress in district No. 8 (St. Louis), the either shut down or running below normal, five leading cities showing sharp declines in while in district No. 8 (St. Louis) buying is value of permits issued, as compared with confined almost exclusively to buying for im- a year ago. In rural districts, it is said, mediate use. Jobbers and retailers are placing new building has been either postponed or no orders for stock. abandoned. The situation in district No. 9 As might be surmised from the lack of de- (Minneapolis) is rather unusual in that per- mand for lumber and other building materials, mits granted in the 9 largest cities increased further general declines in building activity 5 per cent in number and 43 per cent in value are noted in October. In district No. 1 for September, but the volume was nevertheless (Boston), with the exception of Hartford, only about 75 per cent that of October, 1919. Manchester (New Hampshire), and Fitchburg, A very heavy increase in Sioux Falls, where all 12 reporting cities show decreases in the permits were valued at $429,000 in Septem- value of permits issued as compared with ber, has markedly affected the average. October, 1919. Exceptional construction work Actual total values for all 9 cities were in Hartford and Manchester raised the total $3,311,000 in October, $2,312,000 in September, valuation, however, above the figures for the and $4,304,000 in October, 1919. In district same month last year. Applications for build- No. 10 (Kansas City) there was an increase ing permits, including alterations and repairs, in building operations as compared with in 36 cities in Massachusetts were 27.3 per cent September, but total valuations in October less in October than in September, falling from were 48.7 per cent below the corresponding $6,269,000 to $4,558,000. In district No. 2 totals for October, 1919, for the 17 reporting (New York) contracts for buildings, as reported cities. In district No. 11 (Dallas) a large num- by the F. W. Co. for New York State be of permits was issued in October, but the and northern New Jersey, amounted to $49,- valuation was smaller than for the preceding 207,000 in October, as compared with $59,- month. For the district as a whole there has 818,000 in September. District No. 3 (Philadel- been a decrease of 60.1 per cent in the value phia) reports that the total number of permits of permits as compared with October, 1919, issued amounted to 2,310 in October, as com- the actual totals being $6,526,000 and $2,- ared with 1,190 for the same month a year ago. 604,000, respectively. Of the 9 reporting gIstimated cost of construction was $4,804,735 cities, only Beaumont registers an increase, in October, 1920, and $8,246,000 in October, Galveston showing a decline of 76.2 per cent,

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Houston 64.8 per cent, and Dallas 57.2 per ber of cotton mills in North and South Carolina cent. The falling off in building activity, have reduced wages about 15 per cent. In which was only apparent in the Pacific North- district No. 7 (Chicago) unemployment is in- west in September, became general through- creasing in automobile centers, while a consid- out district No. 12 (San Francisco) in October. erable number of the 45,000 garment workers Building permits in the 19 principal cities aver- in the district are idle for at least part of the aged 15.8 per cent less by value and 9.9 per cert time. District No. 8 (St. Louis) reports a sur- less in number than for the preceding month, plus of labor in practically all lines, but more the decrease being less pronounced, however, particularly in lumbering, transportation, cloth- in the interior than on the coast. There was ing, and shoe manufacturing. Wage reduc- an increase, as compared with October, 1919, tions, however, have been insignificant. Dis- of 18.1 per cent by value and 29.5 per cent in trict No. 10 (Kansas City) does not think that number of permits issued. unemployment is greater than usual for the In the industrial sections of the country season, and district No. 12 (San Francisco) unemployment continues to increase and has reports little more than customary unemploy- assumed large proportions in the textile dis- ment, with no unemployment of skilled labor tricts and in centers of boot and shoe manu- reported, although there is a decrease in the facture. In some parts of the country wage labor turnover. In the agricultural regions, on decreases have accompanied the decline in the contrary, the supply of labor has not been employment, while elsewhere reductions of excessive in relation to the demand. Indeed, wages have not yet been much in evidence. in some parts of the country reports of shortage Massachusetts official statistics on unemploy- are still heard, while wages have been generally ment as of September 30, based upon returns maintained at a high point. Cotton pickers from 1,103 trade-unions with a membership of and corn huskers are scarce in district No. 5 255,000, show that the percentage of unem- (Richmond). It is reported from district No. 6 ployment in the textile industry was then 26.3 (Atlanta) that farm labor in Louisiana is barely per cent, and in boots and shoes 40.9 per cent. sufficient to harvest the crops, while district The total percentage for the State was 19.3 per No. 12 (San Francisco) says that in the Mesa, cent of union membership, the highest since Phoenix, and Yuma sections there is a shortage March, 1908. Wage reductions of 15 per cent of cotton pickers. to 20 per cent in textile plants in many New Financial developments during the month England centers are also reported, although have shown stability and successful readjust- recently the Manufacturers' Association of ment to conditions. The outstanding develop- Fall River and the Textile Council agreed upon ment has been a reduction of rates of interest the maintenance of existing wage schedules both on call and time funds and to a moderate following the expiration of the present agree- extent for commercial paper. Some decrease ment. In district No. 2 (New York) it is esti- in the demand for bankers' acceptances has mated that there was a decline of about 5 per cent occurred, although a considerable number of in the number employed in November as com- new customers in this field have been noted in pared with the preceding month. This estimate the financial centers. Country banks have is based on preliminar}^ figures from the New been active buyers of commercial paper during York State Industrial Commission, supple- the month. As was to be expected, a curtail- mented by data obtained from employers and ment has occurred in the amount of inter- labor unions. The New York State Industrial reserve-bank rediscount operations, and despite Commission finds that while 358,806 persons the withholding of crops from market in some were employed in factories in a selected list of parts of the West the process of liquidating industries on August 1, there remained only farmers' obligations and of moving the funds 212,616 on November 10, a decrease of 146,190. to the cities to meet obligations there has made However, as the intention was to select those some progress. The season has been charac- industries which had been most affected by terized by the heavier volume of applications declines in business activity, the statistics have made by out-of-town to city banks for ad- to be taken with reservations. In Paterson, vances, but with the approach of the end of the N. J., 25,000 silk workers are reported to be year some relative lessening in the volume of unemployed. In district No. 3 (Philadelphia) these requirements is naturally observed. unemployment is increasing in many lines, no- Foreign exchange during the month has been tably among textile mill workers. In district unsettled and irregular. Quotations for ster- No. 4 (Cleveland) there is also increasing unem- ling, francs, and lire have on the whole tended ployment. In district No. 5 (Richmond) downward, although from time to time there uthere is a marked increase in unemployment have been reactions toward higher levels of both skilled and unskilled labor." A num- which, however, were usually not long main-

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tained. Continued heavy exports of staple Percentage of increase (or decrease) in net sales in October, products have thrown upon the market large 1920, as compared with the preceding month—Continued. volumes of bills which, together with the over- Auto hanging balance of exchange carried upon the Drugs. Stationery. books of foreign banks and business houses, supplies. have tended to prevent the market from re- acting in any prominent or sustained way to Dis- higher values. There has been a decline in the trict. activity of debits to individual deposit account cnet . cent . cent .

in the clearing-house banks reporting to the mbe r o f firms . mbe r o f firms . mbe r o f firms , mbe r o f firms . 3 | © Pe r Pe r cent . Board, which may be interpreted as reflecting Numbe r o f firms . 1 • 1 the lessened volume of general business. In- No. 3 vestment demand has been lower and declining No. 4 No. 5 prices for stocks have tended to discourage No. 6 buyers of securities. The situation in the stock No. 7 No. 10 market has been parallel to the condition pre- No. 11 -2.6 5 + 4.0 4 -34.0 2 vailing in commodity markets generally, liqui- No. 12 - 1.3; 6 — 11.5 17 i —18.8 13 dation in the one being reflected in heavier selling and a lower level of values in the other. Percentage of increase (or decrease) in net sales in October, In export trade the outstanding feature of 1920, as compared with October, 1919. the month has been seen in the growth of can- cellation of orders, expecially from South American points, which has tended to subject Groceries. Dry goods. | Hardware. Shoes. Furniture. export enterprises to uncertainty. One effect of this situation has been to cause banks to exercise greater caution in connection with the purchase Dis- ! of drafts. Nevertheless the total volume of triet. ! exports has been tolerably well maintained as a result of the large movement of staples to 1 ; s foreign and especially to European ports. No. 3.. 11.2 .. + 6.7 201. No. 4.. 10. -27.5 4+2.0 l SPECIAL REPORTS. No. 5.. 8.2 -47.4 7+ 6.3 36.3 8+12.2 No. 6.. 26.1 -46.2 7- 8.8 32.0 No. 7.. 15.2 -34.0 13 ... 32.6 CONDITION OF WHOLESALE TRADE. No. 10. 26.0 ..!- 2.0 -20.0 3 No.11. 17.0 -19.0 4... -24.0 2 Percentage of increase (or decrease) in net sales in October, No.12. 231-15.4 12- 4.4 -4.2 19 1920, as compared with the preceeding month. 23-22.21

Boots and Auto Farm im- Groceries. Dry goods. Hardware. shoes. Furniture. Drugs. supplies. Stationery. plements. Auto tires.

Dis- Dis- trict. trict.

No. 3.. -11.1 -2.2 20 No. 3 No. 4.. No. 4 No. 5.. 9.2 -40. i -9.2 -16.3 8+ 7.5! No. 5. No. 6.. 1.3 -10.2 -36.4 5 1. No. 6 No. 7.. No. 7 No. 10. -11. ... -14.0 ...-21.0| No. 10 No. 11. - 8. -34.0 4|...... - 9. 0 No. 11 + 15.0 5+5.0 -50.0 No. 12. - 2.3 27 -17.5 12- 3.9 23 12 - 8. 7! No. 12 + 12.0 +21.9 18 -27.

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PRODUCTION REPORT OF THE KNIT GOODS Twenty-seven representative mills which re- MANUFACTURERS OF AMERICA. ported for September and October furnish the Total production of winter and summer underwear for the 6 data for the following tables: months ending Oct. SI, 1920. [In dozens.]

Number Actual Per Septemepte - October. Loss. Gain. of mills produc- cent of ber. report- tion nor- ing. (dozens). mal. Unfilled orders first of month.. 340,444 137,685 202,759 New orders 17.662 44,650 May 48 678,287 82.2 Shipments 228,089 113,446 114,643 June 54 560,034 80.3 Cancellations 26,089 25,668 421 July 57 583,190 73.4 Production 250,316 159,124 91,192 August 64 585,071 67.3 September. 63 606,257 74.2 October... 62 393,422 50.4 FINISHED COTTON FABRICS. The National Association of Finishers of Cot- Order and production report for month endiivj Oct. SI, 1920. ton Fabrics, at the request of the Federal Re- serve Board, have arranged for a monthly sur- Number of mills reporting 29 vey within the industry. The results of the Unfilled orders first of month (dozens) 148,898 inquiries are herewith presented in tabular New orders received during month (dozens) 79,438 form. Mr. H. E. Danner, secretary of the as- Total (A) (dozens) 228,336 sociation, makes the following statement con- cerning the tabulation: Shipments during month (dozens) 123,882 The accompanying figures are compiled from statistics Cancellations during month (dozens) 28,017 furnished by 33 out of 59 members of the National Associa- tion of Finishers of Cotton Fabrics. Total (B) (dozens) 151,899 It is probably fair to state that in the absence of having specific detail at hand, but according to our best estimate, Balance orders on hand Nov. 1 (A minus B) 76,437 it is probably well within the fact, that the figures given for the various classes of work would cover approximately For the month {33 mills). the following percentages of the entire industry: White goods, 70 per cent; dyed goods, 60 per cent; printed goods, 30 per cent. Per cent The figures given represent reports from exactly the of actual same finishers for the two months, both for the totals and for Dozens. produc- the subdivisions, and therefore are strictly comparable. tion. NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and Orders 79,438 25.4 printed goods, and reported their totals only, therefore Shipments... 123,882 39.6 Cancellations. 28,017 the column headed "Total" does not always represent Production... 183,711 58.7 the total of the subdivisions, but is a correct total for the district.

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Production and shipments of finished cotton fabrics, by Federal Reserve districts.

f i [ September, 1920. i October, 1920.

White Dyed Printed Total. White Dyed Printed goods. goods. goods. goods. goods. goods. Total.

Total finished yards billed during month: District 1 ". 10,384,678 11,624,175 9,690,103 33,813,789 8,013,004 9,014,636 4,924,251 23,220,197 2 2,081,937 787,792 551,127 6,573,892 1,991,749 625,529 459,240 5,670,189 3 6,035,052 4,746,897 10,781,949 6,656,895 3,695,909 10,352,804 5 4,767,537 94,582 4,862,119 4,250,307 50,957 4,301,264 6 37 665 986 093 1,023,758 25,460 523,846 549,306 8 1,614,872 2,140,077 Total 23,308,869 18,239,539 10,241,230 58,670,379 20,937,415 14,910,877 5,383,491 46,233,837 Total finishing charges billed during month: District 1 $224,537 $497,744 §650,320 $1,558,885 $187,368 $415,783 $308,059 $998,242 2 ... 41,812 26,746 25,101 192,546 40,120 25,294 13,639 155,732 3 234,695 183,467 434,134 256,829 135,549 406,795 5 98,185 1,835 100,020 88,961 783 89,744 6 749 37,813 38,562 561 21,087 21,648 § 27 693 33,978 Total . . . 599,978 747,605 675,424 2,351,840 573 839 598, 496 321,698 1,706,139 Total average per cent of capacity operated: District 1 46 34 31 36 j 32 30 20 26 2 . . 41 19 47 33 i 35 13 42 27 3 82 30 53 82 31 53 5 74 74 55 55 6 59 33 8 72 81

Average for all districts 57 31 34 41 46 28 23 33 Total gray yardage of finishing orders received: District 1 8,819,825 7,771,112 3,743,385 21,688,638 6 197 932 6,158,694 2,282,297 15,610,148 2 . . • .... 2,398,403 903,225 1,564,039 5,802,899 774,917 632,377 349,596 3,030,898 3 6,518,929 2,963,242 9,991,674 4,678,913 2,740,454 7,902,503 5 3,658,050 47,251 3,705,301 1.928,287 134 1,928,421 6 . ; .... 31,895 256,330 288,225 31,308 135,095 166,403 8 2,291,351 1,801,109 Total 21,427,102 11,941,180 5,307,424 43,768,088 13,611,357 9,666,754 2,631,893 30,439,480 Number of cases of finished goods shipped to customers (case equal approximately 3,000 vards): * District 1 .... 3,366 3,101 2,027 16,141 2,709 2,536 1,169 12,193 2 1,066 2,940 856 2,589 3 2,314 1,520 4,299 2,136 1,460 3,867 5 1,729 2,588 1,915 2,551 6 . . . .. 8 236 202 Total 8,475 4,624 2,027 26,204 7,616 3,996 1,169 21,402 Number of cases of finished goods held in storage at end of month: District 1 ... 4,417 4,990 4,261 23,493 5,021 5,416 4,051 24,235 2 1,106 4,128 1,133 4,226 3 451 349 5,812 500 355 5,957 5 544 1,980 510 2,164 6 8 664 1,121 Total 6,518 5,339 4,261 36,077 7,164 5,771 4,051 37,703 Total average work ahead at end of month, expressed in days: District 1 6.2 4.1 6.9 5.3 4.2 2.1 1.4 2.6 2 15.2 2.9 19.0 8.0 10.6 1.9 10.0 5.0 3 13.9 7 0 9.9 10.0 4.8 6.8 5 10.9 10.9 13.0 13.0 6 2.6 2.3 8 16.0 20.0

Average for all districts 9.4 4.5 8.7 6.9 7.3 2.6 2.6 4.4

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THE INTERNATIONAL FINANCIAL CON- The work of the conference was divided into FERENCE AT BRUSSELS. two parts—first, the presentation of statistical statements regarding the economic and finan- The financial conference, called by the Coun- cial conditions of the countries represented, cil of the originally for July and, second, the conferences of the various 23 at Brussels, was finally held on September commissions assigned to specific problems. 24, and lasted from that date until October 8. For the purposes of reporting, the members of Delegates were sent not only from the countries the conference were divided into the following which are members of the league but also from six groups: First, neutrals; second, continental former enemy countries with the exception of allies; third, conquered nations; fourth, new Turkey, and from certain of the newer States, nations; fifth, England, the British Empire, and including , Luxemburg, Esthonia, Japan; sixth, miscellaneous. Four committees , and . Russia did not send were appointed for the purpose of developing delegations and the United States was only the conclusions of the conference on the follow- unofficially represented. ing subjects: (1) Public finance; (2) currency The difficulties which have of late exhibited and exchange; (3) international trade; (4) inter- themselves in American foreign trade give a national credits. The question of reparations special interest to the outcome at the Brussels and interallied war debts were excluded from conference, detailed information concerning discussion at the conference. which has only recently been received in the United States/ There are presented herewith Preliminary to the meeting of the conference the outstanding facts concerning the action of memoranda were prepared by economists in the conference. Of particular interest in this various countries and submitted to the con- connection are the reports of the four com- ference for its consideration. Prof. G. Cassel, mittees which offered carefully prepared results of Stockholm, presented a memorandum on of investigation and discussion, while among The World's Monetary Problems. The recom- the various schemes laid before the conference, mendations of M. Ter Meulen, of Holland, were that of M. Ter Meulen, of Holland, is the one for the most part accepted by the Commission which has apparently received most approval on International Credits and incorporated in from American observers. As will be noted its resolution. Closely related to M. Ter from the digest of the findings of the conference, Meulen's recommendation is that of M. Dela- the essence of the plan of M. Ter Meulen—as croix, former prime minister and minister of indeed that of various other students of the public finance for Belgium, in his memorandum situation—is found in the segregation of assets proposing the establishment of an international which form the basis of government guaranties bank. An analysis of the difficulties connected and which, therefore, afford to foreign lenders with the problem are set forth by Prof. A. C. about all the security that they could possibly Pigou, of Cambridge. Excerpts from Prof. expect to get under any conditions. The Cassel s report are published below: merit of the discussions at the Brussels con- ference would seem to be chiefly in the fact WORLD'S MONETARY PROBLEMS. that they recognized the necessity of putting (By Gustav Cassel.) advances of capital into the form of long-term investments and were prepared to ascertain the kinds of protection for such investment which would to the best advantage and in just THE PROCESS OF INFLATION. measure tempt foreigners—especially Ameri- The war has been financed by all countries involved, cans—to purchase securities whose proceeds to a great extent, by means of creating more money, might be used in paying for raw materials and which has been, more or less directly, handed over to the exchequer, partly in the form of new issues of bank notes fixed capital needed by the borrowing coun- or State paper money; partly in the form of extended tries. The Brussels conference having no bank credits, which could be used as means of payment. definite authority to do more than recommend, The latter method has indirectly caused a corresponding the final decision in the matter is practically increase of the circulating medium of exchange to satisfy the increased demand for cash for smaller payments; for before the League of Nations, which from the proportion between the payments in bank credits and November 15 onward, was in session at those in cash has, as stated above, been pretty constant . As was recognized throughout the as determined by the customs of each people. Brussels conference the principal obstacle to The result of the creation of new money has been, in obtaining any very definite settlement of the both cases, that a new buying capacity has been put at the disposal of the Government. The total buying issues at stake before that conference was capacity of the community having in this way been in- found in the fact that neither the amount nor creased without a corresponding increase in the commodi- the method of paying the German indemnities ties to be bought, a general rise in prices has followed. had been determined upon. With higher prices, the need for means of payment has been increased proportionally, and the mass of the medium

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of exchange which could be kept in circulation has, from this new normal rate, and in a period of transition therefore, at every time been proportional to the general these fluctuations are apt to be rather wide. But the level of prices. But the primus motor to the enhancement rate calculated in the way indicated must be regarded as of prices has always been the creation of an artificial the new parity between the currencies. This parity may buying capacity. be called the purchasing power parity, as it is determined Under normal conditions, it should be observed, a fresh by the quotient of the purchasing powers of the different buying capacity is created only by production and mar- currencies. keting of commodities and services of a corresponding During the war the buying capacity of the different value, and such buying capacity does not tend to raise monetary standards has, owing to the over-abundant prices. As artificial, we must then denote a buying supply of means of payment, been much reduced, though capacity which is not based on such production and which in very different proportions. Consequently the pur- must, therefore, lead to a rise in prices. * * * chasing power parities have undergone very important However, Government finance is not the only factor to alterations and are now quite different from the parities be taken account of in the process of inflation. Every which were in force before the war. There is no reason extension of bank credits beyond the limit set by the to believe that exchanges will ever be restored generally fresh savings put at the disposal of the banks is apt to to their old parities. These old parities have, in fact, cause inflation. A certain restriction of the credit giving lost their old significance and can no longer in any respect of the banks is therefore always necessary. This restric- be regarded as normal. The constant references still tion is achieved partly by discriminating between the made to them are a most serious hindrance against a clear demands for credit, partly by a reduction of their amount, understanding of what has really happened to the world's and partly by the rates of discount or interest charged. monetary standards. In statistics likewise it is only Where these means are not applied with sufficient severity confusing to retain the old custom of converting foreign the credit giving will involve the creation of artificial money on the basis of the prewar parities. buying capacity; and if such practice is made possible The purchasing power parities represent the true by a supply of legal tender adapted to it, the result must equilibrium of the exchanges, and it is, therefore, of great inevitably be an inflation of the currency. This is in fact practical value to know these parities. It is, in fact, to what has been going on since the war in a good many them we have to refer when we wish to get an idea of the countries. * * * real value of currencies whose exchanges are subject to In all countries the rates of discount of the central banks arbitrary and sometimes wild fluctuations. Every care have been kept far beneath the heights which would have should therefore be taken to ascertain the rate of inflation corresponded to the extraordinary scarcity of capital of each country, as measured by the increase of circulation caused by the war and by extravagant State expenditure or by the rise of prices, and from these data calculate the after the war. The rate of interest has, as all other prices, purchasing power parities of the different currencies. the fundamental function in social economy of restricting Such figures, based on monthly mean inflation in different demand so far as the limited supply requires. With a countries ought to be laid before the world some few days too low rate of interest the equilibrium of the capital after the end of each month. * * * market is disturbed, and a need for artificial restriction of the demand for capital arises, expressing itself in ABNORMAL DEVIATIONS OF THE EXCHANGES. schemes for bureaucratic control of the use of capital, "rationing of capital," etc. Such means are always more In the earlier part of the war, when a certain amount of or less pernicious for the wholesome growth of economic freedom still was left for international trade, the actual life, but they are seldom effective enough to bring about rates of the exchanges used to coincide fairly well with the necessary restriction of the demand for capital. And the purchasing power parities. But later the sharp as long as the banks, and ultimately the central bants, restrictions of the trade between nations have often dis- have to meet greater demands than can be satisfied by torted the exchanges from these parities. If trade between real savings, an arbitrary creation of bank money is two countries is more hampered in one direction than in inevitable. Thus the result of an endeavor to keep the other, the value of the money of the country whose down the bank rate beneath the point which the real export is relatively more restricted will fall, in the other scarcity of capital would require must always be an country, beneath the purchasing power parity. This inflation. * * * result is only in accordance with our general conception of the rate of exchange as an expression of the valuation of a means of securing the supply of foreign commodities; INTERNATIONAL EXCHANGES—PURCHASING PO'.VER if this supply is made artificially difficult, the actual value PARITIES. of the foreign currency must sink in proportion. There are many instances of such abnormal deviations of the Given a normal freedom of trade between two countries exchanges. Thus, the inflation in the United States has A and B, a rate of exchange will establish itself between without doubt been much smaller than in Sweden, and them and this rate will, smaller fluctuations apart, remain the dollar has kept much more of its old purchasing power unaltered as long as no alterations in the purchasing power than the Swedish crown. The purchasing power parity of either currency is made and no special hindrances are must therefore have risen considerably above the old parity imposed upon the trade. But as soon as an inflation takes of kroner 3.73 for the dollar. But the actual rate fell, place in the money of A and the purchasing power of during the time of the severest war restrictions of American this money is therefore diminished, the value of the A- exports to Sweden, far beneath this old parity, the mean money in B must necessarily be reduced in the same pro- monthly rate for November, 1917, being as low as kroner portion. And if the B-money is inflated and its par- 2.55. As soon as the restrictions were removed, the dollar chasing power is lowered, the valuation of the A-money exchange rose to a height corresponding to the purchasing in B will clearly increase in the same proportion. If, power parity and even for a short time above it. The e. g., the inflation in A has been in the proportion of 320 explanation of the temporary undervaluation of the dollar to 100 and the inflation in B has been in the proportion is to be sought in the absence of any immediate employ- of 240 to 100, the new rate of .exchange will be three- ment for dollars in Swedish possession. * * * fourths of the old rate (approximately the case of England We can imagine ^ several other factors which might and the United States). Hence the following rule: depress the international value of a currency beneath its When two currencies have been inflated, the new normal purchasing power parity. But if there is no special rate of exchange will be equal to the old rate multiplied hindrance against export from a country, every under- by the quotient between the degrees of inflation of both valuation of its currency will obviously call forth an countries. There will, of course, always be fluctuations increase of its export tending to counteract this under-

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valuation. For as soon as the currency of a country is currency of a country to foreign speculators. Although undervalued in comparison with its purchasing power the case of Germany is the most conspicuous, the practice parity there will be a special profit in buying this currency has by no means been restricted to that country. Other and using the money to procure commodities from that countries which have been tempted on the same downward country. The stimulus thus given to the demand must road should now see the necessity of stopping the process. very soon bring the price of the currency up to the pur- chasing power parity. Therefore, where no extra restric- EFFECTS ON INTERNATIONAL TRADE. tions on the export of a country are imposed, other causes depressing the exchange beneath the purchasing power Every alteration in the purchasing power parity of the parity can have only a temporary effect. exchange between two countries naturally must have a As instances of such depressing tendencies we can quote: disturbing influence on their mutual trade. But as soon A distrust in the future of a monetary standard, leading to as this parity has been stabilized at a certain level it is of a discounting of an anticipated fall of the internal value no importance whether this level is high or low. Thus, of the money; operations of speculators, etc. By far the the export trade of a country is not hampered by low most important of these depressing factors is, however, quotations of the foreign exchanges as long as these quota- the practice of selling out the currency of a country abroad. tions only correspond to a high level of prices in foreign This practice has, during the last year, reached such pro- countries or a low level at home; nor is it specially stimu- portions and become such a prominent factor in the inter- lated by high quotations of the foreign exchanges as long as national monetary situation that it is necessary to devote these only correspond to the relative purchasing power of special attention to it. the monetary standards quoted. Likewise, low prices on The whole operation can best be studied in the case of foreign currencies do not mean an encouragement of Germany. German marks have been sold out abroad on imports from them or a handicap for the home producer, an enormous scale, and at almost any price they would provided these exchanges are a true expression for the fetch. As the central government, local bodies, banks, purchasing power of the foreign money; on the same con- and business enterprises were in absolute need of foreign dition, high prices of foreign currencies do not in any way means of payment, and these did not seem to be pro- hamper the import from them. In fact, the terms "high" curable in any other way, the country was driven to this or "low" exchanges have no sense in themselves; if they selling out of its currency. The process must be looked are to be used they must obviously refer to the normal upon as a substitute—a bad substitute, indeed—for the rates of exchange, i. e., to the purchasing power parities. more regular device of securing foreign loans. As lenders But when used, as is generally the case, in reference to could not be found, Germany turned to a new class of old parities which have lost all real significance they are investors, the speculators in currency, and offered them, in the highest degree misleading. instead of a high rate of interest, the inducement of an Equally clear it is that every deviation of the actual extraordinary low rate of exchange. Of course, the rates of exchange from the purchasing power parities must speculators suffered heavy losses as the exchange went cause considerable disturbances in international trade. down step by step. But new ranks of speculators were The export from A to B must be very much hampered if always ready to believe that "the bottom has been the money of B is quoted in A lower than would corre- reached"; asa matter of fact, the last of them have made spond to the general level of prices in B as compared with enormous profits. The selling out of marks is said to that in A. At the same time, the import to A from B have been considerably increased by the endeavors to would get an artificial stimulus from such a quotation. evade in this way an exorbitant taxation. True, both these effects would tend to enhance the value Now, this process, carried on on such a scale, inevitably of the B money in A and to bring it up again to its purchas- must have a tendency to depress the German mark beneath ing power parity, which shows that this parity is the true its purchasing power parity. Such a depression has also point of equilibrium for the exchanges. taken place, at certain periods, to a most alarming degree. But in reality this restoration to equilibrium may take When the mark was at its lowest international value it a long time, expecially if the forces depressing the ex- had certainly not more than a third or a fourth part of the change are strong and work continually. And this period value which would have corresponded to its internal may prove very disturbing for trade and industry in both purchasing power. It would, under such circumstances, countries. Generally the country which has got its money have been extraordinarily profitable to use German marks undervalued is regarded as the sufferer, and the difficul- for buying in the cheap German markets. In fact, almost ties of its position are clear to everybody. In fact, how- everything could then have been exported from Germany ever, it is not much better for the country whose currency with great advantage. This was, of course, an impossible is overvalued, such a country being exposed to quite a situation for Germany. She was simply compelled to new sort of dumping of the most reckless and incalculable protect her scanty supplies of food and raw materials, and kind, and at the same time very much hampered in its thus to prohibit exports of them. In regard to other com- export trade. Most European countries have had such modities she tried to defend herself against buyers, seek- disagreeable experiences of the extraordinary depression ing to take advantage of the low exchanges, by raising of the German mark during the winter 1919-20, while prices for foreigners to some multiple of the inland price. Germany herself has had to go through all the sufferings These measures, however, must, according to what has and curious disturbances of a country exposed to an ab- been stated above, have the effect of pressing down, normal undervaluation of its currency. But this is by permanently, the exchange value of the mark beneath its no means the only case. There has been, in the first purchasing power parity. months of 1920, a very substantial undervaluation of the On the other side, the measures have not been quite French franc and the Italian "lira in relation to British, effective. It has not been possible to prevent the enor- American, and neutral currencies. It is obviously of mous buying capacity put into the hands of foreigners great importance that the fullest light should be thrown from reverting, to a certain extent, to Germany and making upon the causes of these abnormal movements of the ex- itself fell Dn its internal market, by forcing up prices even changes and on their effects on trade. for inland buyers. This means, however, that the internal Here we have, however, first of all, to emphasize the purchasing power of the German mark has been reduced. general truth that exchanges are disturbing to interna- In fact, the general rise of prices in Germany during the tional trade only in so far as they deviate from their pur- last 12 months has been enormous. But then, of course, chasing power parities. To judge the present exchanges the purchasing power parities of the mark have been from the point of view of the prewar parities is a grave proportionally cut down. mistake, which is, however, incessantly repeated, even From these experiences it seems clear enough what dis- in otherwise sound expositions of the monetary situation. astrous effects are connected with an endeavor to sell out a The result is that people often represent an exchange as

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being against a country when the opposite is the case, and modities from France were particularly restricted and vice versa. In questions of such vital practical bearing the foreign holders of francs thereby cut off from a free no obscurity in regard to first principles can be allowed use of their purchasing power on the French market. without serious risk, and it seems, therefore, highly desir- This ought to make it clear that an adverse balance of able that a full understanding on this point should be trade, or even, more generally, an adverse balance of arrived at. The world will never come back to the pre- daily obligations, is quite insufficient as an explanation war parities, and we shall therefore, in any case, sooner or of any lasting depression of the exchange value of the cur- later have to accustom ourselves to look upon the new rency of the country. purchasing power parities which, we may hope, will gradu- Now, if we are bound, on these grounds, to abandon ally crystallize themselves out of the present muddle as altogether the popular theory of trade balances as an the true parities. explanation of the movements of international exchanges The months of May and June of 1920 have witnessed a since the beginning of the war, another very popular very sharp rise of the German mark. One could have theory has to be buried, too, viz, the theory that depressed imagined that this recovery should have been a great exchanges can be corrected by an adjustment of the trade advantage for Germany, as well as for the countries trading balance. In fact, it is very generally believed that a • with Germany, and, to a certain extent, this has undoubt- country which has seen the price of its money abroad edly been the case. But the very alteration and its sud- sink very much below its prewar parity will be able, denness have in reality proved almost fatal not only to after the war, to restore the old exchanges only by increas- the international trade of Germany, but also to her pro- ing its exports. This will certainly be possible if the low duction and her whole internal economic life. These quotations of the money of the country have been caused consequences have naturally been aggravated by the vio- exclusively by one-sided hindrances against its exports. lent daily fluctuations of the exchanges which have taken But if they are signs of a deteriorated internal value of place and which seem to have become worse and more the money, no development of the export of the country incalculable than ever. can better the exchanges. These will in the future be These experiences and similar experiences in regard to governed exclusively by the purchasing power parities, other currencies seem to show that exchanges which are and will therefore only be improved if the country suc- very much depressed beneath their purchasing power ceeds in reducing its inflation, and thus in giving its parities are liable to more violent and arbitrary fluctua- monetary unit a higher internal value. But this is, as tions than exchanges which move in the vicinity of their we shall see, a very complicated process, involving diffi- purchasing power parity. culties of another kind than that of increasing exports. Certainly a situation which allows such fluctuations of the exchanges is quite intolerable; the complete impossi- bility of making an ordinary business calculation or an STABILIZATION OF THE DIFFERENT MONETARY STANDARDS. economic forecast of any kind threatens not only inter- national trade, but the whole economic life of a continu- The problem of stopping inflation is obviously, in the ally growing part of the world with a complete breakdown. first instance, a problem for each country to decide for When the exchanges move against a country—i. e., itself. By carrying through such a policy the country when the currency of the country sinks in international will be able to attain a stabilized standard of value; and value—people generally explain it as a result of an adverse whatever may be the further aims of the monetary policy balance of trade. But this explanation is obviously of the country, this is undoubtedly the first thing to be inadequate if the deviation of the exchanges is consider- done. able and has more than a quite temporary character. The general means of keeping up a monetary standard For if a country buys more from another than it sells to it, is the sufficient limitation of the supply of means of pay- the balance must be paid in some way; say, by export of ment in that standard. The principal regulator of this securities or by loans in the other country. Thus the supply is the rate of discount. In the whole world the balance of payments must on the whole equalize itself, rates of discount have been too low during the war. The and there is no reason for a definite alteration in the rates real scarcity of capital would have commanded a much of exchange. Should such an alteration occur, it must higher interest than the 5 or 6 per cent which have gener- generally be taken as a proof of an inflation which has ally prevailed but which have only been the results of brought down the internal value of the monetary unit a continual falsification of the money market. Even now, of the country and raised its general level of prices. With after the war, the world's need of capital is so great, in an unaltered price level and an adverse rate of exchange comparison with the scanty supply, that a real equilibrium the country's export trade should get a strong stimulus, can be attained only by the aid of higher rates of interest which would tend to bring the exchange back soon enough than those generally prevailing. This has begun to be to its normal rate. more and more recognized, as is shown by the latest in- On the other hand, if an inflation has taken place a creases of the discount rates of some central banks up to 7 new normal equilibrium of the exchanges must establish per cent. But still there are many countries lagging be- itself, quite irrespective of any balance of trade. If, e.g., hind in this regard in the belief, as it seems, that they can the French inflation is 600 (in comparison with 100 before really afford the convenience of a much lower rate, and the war) and the English inflation is 300, it is altogether curiously enough these countries are by no means always superfluous to look for another cause to explain the normal among the richest. * * * rate having doubled from 25 francs for the pound to 50 The first condition which must be fulfilled, if a stabili- francs. (These figures are, of course, somewhat simplified, zation of prices shall be attained, is, therefore, that the but may be taken as representing the essential of what rate of interest at which the banks lend their money shall, has really happened.) If then, in addition, France, broadly at least, correspond to the real scarcity of capital. suffers from an adverse balance of trade, this balance Besides the rate of interest, there are other means for must be paid for by fresh credits or by export of securi- enforcing the necessary restriction on the demand for ties, and no further depression of the franc will follow. capital. The banks always discriminate between the Were the country really cut off from all normal ways of proposals for which their accommodation is sought, and procuring means of payment, and were it for this reason in periods of particular scarcity of capital it is only natural turning to sell out its own currency abroad to speculators, that this discrimination is made more severe than usual. that would without doubt be a factor tending to a further It seems sound, under present circumstances to discrimi- depression of the international value of the franc. But nate particularly against a use of capital which, though even then a definite depression beneath the purchasing preferable enough, will require a long time to become power parity could only take place if the export of com- remunerative; or which involves mainly the strength-

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ening of a monopoly without adding materially to the THE POSITION OF THE CENTRAL POWERS. productive capacity of the community; or which is cal- culated to serve a demand for luxuries which now ought Moreover, the Central Powers, who are under the to be excluded. But the proposition that is sometimes jurisdiction of the reparations commission, must neverthe- put forward that the banks should restrain their fresh less be allowed a certain amount of free export. Germans advances to purposes of "public utility," refusing assist- must be allowed to deal with their foreign agents in order ance even to the most profitable bargains or enterprises, to sell their produce and obtain a supply of essential raw seems thoroughly unsound, considering that it must be material. The powers of the reparations commission can a rather important public interest—particularly in a poor not be widened to that extent. Therefore, another or- country or in times of distress—that capital shall be ganization is necessary, independent of the reparations used, generally, in the most profitable way. The device commission, which can control this free commerce from a of using capital for "public utility" has, in reality, purely financial point of view. proved itself to lead to particularly wasteful dispositions of capital, without due regard to the actual limits of THE EFFECTS OF THE BOND ISSUE. supply, and, therefore, to be one of the most prominent factors in the process of inflation. Doubtless the exchange market as it now exists will The bureaucratic control of the use of capital which remain independent of the international bank of issue, has been introduced in some countries does not seem but as a large number of international transactions will capable of doing much good. If the rate of interest is be carried out in the way described above, rises in the kept so high as to correspond to the real scarcity of capital, exchange will be retarded, and the exchange market will there will be no need for a further restriction of the de- no longer have a continual tendency to rise. Further, mand on bureaucratic lines. And if bureaucratic regula- States will gradually come to understand how vital it is tion is to supply the additional restriction of the market to them to equalize their balance of trade and, conse- which a too low bank rate makes necessary, it seems quently, to limit imports to strictly necessary goods. almost sure that the employment of the available capital States with a depreciated exchange having thus obtained in the-community will be rather uneconomical. Besides, bonds from the bank of issue will be able to obtain abroad, the control itself must be a serious hindrance against by this means, goods essential for their food supply and trade and enterprise, and, therefore, must diminish the the raw material for their industries and for transport effectivity of the business life of the country. * * * services, etc. It will be clearly understood that these bonds can only be issued for the purchase of produce or M. Delacroix, former prime minister and min- goods, and not for purchase of gold. Foreign traders to ister of finance for Belgium, presented a memo- whom these bonds are oltered in payment will endeavor randum to the conference, which has been to discount them through private banks. They will have no difficulty in doing so as the security will be first class, widely discussed, on the subject of an inter- equal in value to gold, and secured by guarantees under national bank of issue. international control. The system, therefore, does not entail the undesirable necessity of fresh inflations of cur- ESTABLISHMENT OF AN INTERNATIONAL BANK. rency. Securities will consist either of rights over cus- toms duties, harvests, mineral products, or any produce (By M. Delacroix.) from which a return can be foreseen in a relatively short time, and which will allow the bonds to be redeemed at a not too distant date.

THE INTERNATIONAL BANK WILL ACT AS A CLEARING AN INTERNATIONAL BANK OF ISSUE. HOUSE. Such being the financial condition of Europe, it is The working of the bank will, moreover, allow rapid urgent, indeed essential, to set up an international bank circulation of these bonds. The resumption of work ought of issue, in which all States, without distinction, would to result in the reestablishment of the financial balance be represented, and which would be managed by a of each of the States affected by the crisis. The inter- committee consisting of a number of delegates. The national bank will thus be a huge clearing house, with objects of this bank would be to issue interest-bearing branches in each country which belongs to it. The gold bonds in exchange for genuine securities. The number of bonds given to each country will be deter- committee of this bank would decide in each case whether mined by general agreement, and the clearing house will the securities offered were satisfactory; only after thor- keep them at the disposal of the different countries who ough investigation of the proposed guarantees would it call for them as and when they need them. The bonds consent to issue to any State requesting a loan, bonds assigned will be handed over by the Government to the to the value of these securities. The guarantees would branch of the clearing house with instructions not to involve, in certain cases, a direct control over the yield allow them to be used except for essential needs. At the obtained from the securities. same time steps could be taken to insure that the pay- f The situation is so critical in certain parts of Europe ments received for foreign sales of manufactured goods by that common humanity calls for intervention, and for those who import raw material should be put at the dis- loans to prevent the populations dying of want. Yet posal of the branch of the clearing house and dealt with these countries in nearly every case still possess resources at the same rate as that fixed for the bonds. which they can not immediately make use of. The bank of issue would give them the means of using THE IMPORTANCE OF COUNTRIES PROVIDING RAW these assets, during a period to be defined, and would MATERIALS. permit them to obtain at once the funds necessary to buy essential supplies. Without the assistance of the chief holders of raw ma- There are some States, especially in Europe, whose terials and gold (American and neutral countries) it will financial resources are at an end, but who, nevertheless, be difficult to remedy the disease. But even without possess considerable natural wealth. The international this assistance, an arrangement on a smaller scale between bank, by means of the financial control which it would countries with depreciated exchanges would be most introduce, would be the means of saving them from ruin. desirable and useful.

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The difficult point will be the assessment of the number material and natural resources in a really effective manner; of bonds to be given to each country. and that yet others are so short of the apparatus of trans- We must, above all, take into account the possibility of port, adequately repaired railway lines, wagons, engines, repayment, by means of the produce of industry, of the and the necessary spare parts that such resources in food, sums lent to borrowing States. The "coefficient of pro- material (including coal), etc., as they have or receive can ductivity" must, therefore, be taken into account. not be taken without prolonged delays to the places where it is most wanted. Thus there would be scheduled (1) In an additional memorandum Prof. Pigou, food up to a minimum required to conserve working power; of Cambridge, has set forth the salient diffi- (2) agricultural implements to enable food to be produced culties connected with the whole problem of at home up to a minimum; (3) material to enable factories to get to work up to a minimum; (4) machines for depleted international loans. factories. These things would take precedence of every- thing else as being the conditions precedent to produc- MEMORANDUM ON CREDIT, CURRENCY, AND EXCHANGE tivity. Then might come long period work to restore FLUCTUATIONS. regions so devastated that no effect can be produced for (By A. C. Pigou.) some years; to rebuild factories or build new ones, and so on. Statistical inquiry would have to be made to deter- * * * There are three principal alternative methods mine the amount of the needs of the several countries under which a loan with international sanction might be under the different categories. The distribution of avail- raised: (1) It might be offered for subscription on the able funds would have in the main to be based upon the markets of the world under an international guaranty; result of this inquiry. Essential food needs and needs (2) it might be subscribed directly by certain of the finan- for capital required to set existing capital working should cially stronger governments; or (3) the administrative in the general interest be satisfied before the needs for authority might issue guaranteed bonds to borrowing gov- restoration and rebuilding of devastated areas, the effect- ernments which these borrowers could then sell upon ive renewal of which would necessarily take a long time. the market. These plans will now be considered in There remains the problem of the conditions to be im- turn. * * * posed in connection with the loans. It is evident that no The third plan is in substance that submitted by M. grants should be made except for the purpose of purchas- Delacroix. Under this plan the guaranteeing authority ing essential articles, necessary food, raw material for would not raise subscriptions at all, but would emit industry, transport equipment, or the mechanical equip- interest-bearing bonds, secured in the first place on the ment of factories and farms. This condition would not, pledge of repayment, accompanied perhaps .by collateral, however, always be sufficient. A loan made for the pur- of the borrowing governments, and in the second place chase of these things might be so used as to enable the by the guarantee of the international authority. These home resources of borrowing countries to be wasted in bonds would then be issued by the government to which unessential purposes, which, but for the loan, would have a loan had been granted as means of payment for foreign had to be postponed in favor of efforts to meet essential purchases. This means, in effect, that they would be needs. In this way, though in form the loan would be sold for cash either to members of the general public or to devoted to essential needs, in reality it would not be. bankers in stronger countries. This plan has the advan- Further conditions might therefore be found on occasions tage that it can not well end in a fiasco. Bonds of this to be necessary. kind are practically bound to be salable at a price. It is It goes without saying that some discretion on this mat- thus certain that funds really would be raised for the coun- ter would have to be left to the authority entrusted with tries in need. If the League of Nations issued a 5 per cent the administration of the loan, and it is not, therefore, loan for subscription, there might be hardly any response, suggested that the same conditions should be imposed in but if it in effect issues.5 per cent bonds and offers them connection with every grant. Nevertheless, it may be on the market, not at a fixed issue price but at whatever useful to pass in review certain conditions which naturally price the market decides to pay for the bonds, there is suggest themselves as appropriate. bound to be a response. If the tonds sold in the market (a) First, as a condition of a grant from the international at less than par, the borrowing government would, of loan, the administering authority should require the bor- course, have to pay for the accommodation thus obtained rowing country to take means to insure that its citizens a net rate of interest correspondingly in excess oi the are not at the same time themselves making loans or nominal rate borne by the bond. This, however, would investments abroad. merely register the fact that capital is very dear. Except Investment of capital abroad may be stopped by direct by way of gift, which is not now in question, countries in prohibition against making loans to foreigners or taking up difficulties can not reasonably look to obtain capital on shares in foreign companies. It would be necessary also terms better than these on which it will be subscribed to forbid the purchase from foreigners of existing shares, under an international guaranty. whether in foreign or in domestic companies. The same If the conditions of loans operated under an international result could be achieved otherwise by (1) prohibiting the guaranty were made sufficiently stringent, the risk to the export of any securities except against goods, and (2) pro- guarantors would not be very large. Nevertheless, it hibiting the export of goods except on condition that the would, of course, be necessary to define strictly the terms proceeds shall be brought in either goods or in foreign of the guaranty and to determine the limit of liability of exchange within some limited time (e. g., in Greece), the each guaranteeing government. foreign exchange thereafter only being made available to The second problem * * * was that o^" determining importers of essential goods. the principles in accordance with which the internation- (b) Secondly, it seems reasonable that loans should be ally raised loan should be distributed. Plainly the lead- conditional on the borrowing countries conserving such ing criteria must be, for consumption loans, urgency of foreign exchange as they hold either in payment for ex- need, and for production loans, probable productivity in ports of their goods or for the sale abroad of securities held the near future. Account must be taken of the fact that by their citizens for essential purchases. This condition certain countries are so short of materials that their labor could be enforced by the prohibition of luxury imports and factory equipment can not be got to work and that and, ultimately, by compulsion upon all receivers of for- therefore a large mass of productive power is involuntarily eign exchange to sell it in a central institution which, in idle; that others, while perhaps possessing raw material, turn, would only resell to persons contracting to bring in are short of machines, factory tools, agricultural imple- imports scheduled as essential. It should be pointed out, ments, etc., so that their labor can not be applied to their however, that a policy of excluding luxury imports may

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defeat its own purpose unless it is accompanied by a public finance throughout the world, and particularly in similar prohibition against the home manufacture of luxury Europe. Their import may be summed up in the state- goods for home consumption. For, if nothing were done ment that 3 out of every 4 of the countries represented at except to prohibit the import of luxuries, rich people this conference, and 11 out of 12 of the European countries, desirous of these or similar things might offer high prices anticipate a budget deficit in the present year. Public for home varieties of them. In certain circumstances this opinion is largely responsible for this situation. The close would mean that the real cost in capital and labor involved connection between these budget deficits and the cost of in getting them by direct manufacture would be bigger living, which is causing such suffering and unrest through- than the real cost of making the exports with which they out the world, is far from being grasped. Nearly every used to be bought. It might happen, therefore, that a government is being pressed to incur fresh expenditure; prohibition of luxury imports would cause exports to fall largely on palliatives which aggravate the very evils off by more than the amount formerly employed to buy the against which they are directed. The first step is to bring luxuries; so that, as a final result of the prohibition, the public opinion in every country to realize the essential country would be less, and not better, able to buy neces- facts of the situation and particularly the need for reestab- saries for itself abroad. These considerations show that lishing public finances on a sound basis as a preliminary the case for making a prohibition of luxury imports unac- to the execution of those social reforms which the world companied by general sumptuary legislation, a condition demands. of international assistance, is less strong than it appears to II. Public attention should be especially drawn to the be at first sight. fact that the reduction of prices and the restoration of pros- (c) Thirdly, in the particular conditions of the present perity is dependent on the increase of production, and time there is a third form of waste of resources which it that the continual excess of government expenditure over may be well to preclude in the conditions of a loan. In revenue represented by budget deficits is one of the most Germany and Austria, owing to an exchange collapse out serious obstacles to such increase of production, as it must of proportion to the rise of domestic prices, it pays indi- sooner or later involve the following consequences: viduals to sell goods to foreigners for export at very much (a) Further inflation of credit and currency. less than their foreign value. Clearly, here what is re- (6) A further depreciation in the purchasing power of quired is not, indeed, to prohibit exports, but to insure the domestic currency, and a still greater instability of the that export sales are made at prices roughly corresponding foreign exchanges. with the world market, the special profit in domestic cur- (c) A further rise in prices and in the cost of living. rency being taken in an export tax or otherwise by the The country which accepts the policy of budget deficits government. is treading the slippery path which leads to general ruin; (d) Fourthly, it can be no part of the duty of a body to escape from that path no sacrifice is too great. set up by the League of Nations indirectly to finance war III. It is therefore imperative that every government or the upbuilding of military establishments. It may should, as the first social and financial reform, on which well be held, therefore, that no loan should be made to a all others depend— nation engaged in war or in "unreasonable military pre- • (a) Restrict its ordinary recurrent expenditure, includ- parations." In practice, however, the task of deciding ing the service of the debt to such an amount as can be what preparations are in fact unreasonable would often covered by its ordinary revenue. present insuperable difficulties. The same sort of diffi- (6) Rigidly reduce all expenditure on armaments in so culty attaches to the imposition of such a condition as far as such reduction is compatible with the preservation that a borrowing government must be taking reasonable of national security. means to balance its budget or to check the expansion of (c) Abandon all unproductive extraordinary expendi- its currency. ture. (e) Finally, the loans would have to be in terms of gold (d) Restrict even productive extraordinary expenditure and not of the borrowing country's currency. The in- to the lowest possible amount. terest payable on them, as well as the principal, would IV. The Supreme Council of the Allied Powers in its have to be exempt from all taxation in that country so pronouncement on the 8th March declared that "Armies long as they were held by foreigners. They would have should everywhere be reduced to a peace footing, that to take precedence over, or at least to rank with, other armaments should be limited to the lowest possible figure debts of the borrowing governments. In some circum- compatible with national security, and that the League stances a lien on customs or on industrial concerns might of Nations should be invited to consider, as soon as possible, be required as security for the payment of the interest proposals to this end." The statements presented to the due on them. conference show that, on an average, some 20 per cent of the national expenditure is still being devoted to the main- RESOLUTIONS OF COMMITTEES. tenance of armaments and the preparations for war. The conference desires to affirm with the utmost emphasis that the world can not afford this expenditure. Only by a The resolutions of the four committees ap- frank policy of mutual cooperation can the nations hope pointed for the study of public finance, currency to regain their old prosperity; and in order to secure that and exchange, international trade, and inter- result the whole resources of each country must be devoted to strictly productive purposes. national credits are quoted in full below. The The conference accordingly recommends most earnestly annex to the resolutions of the commission on to the council of the League of Nations the desirability of international credits gives the suggestions of conferring at once with the several governments concerned, M. Ter Meulen which were accepted by that with a view to securing a general and agreed reduction of the crushing burden which, on their existing scale, arma- committee. ments still impose on the impoverished peoples of the world, sapping their resources and imperiling their recov- RESOLUTIONS PROPOSED BY THE COMMISSION ON PUBLIC ery from the ravages of war. The conference hopes that FINANCE. the assembly of the League which is about to meet will take energetic action to this end. I. Thirty-nine nations have in turn placed before the V. While recognizing the practical difficulties in the way international financial conference a statement of their of immediate action in all cases, the conference considers financial position. The examination of these statements that every government should abandon at the earlies brings out the extreme gravity of the general situation of practicable date all uneconomical and artificial measure

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which conceal from the people]the true economic situation; X. The conference is of opinion that the strict applica- such measures include— tion of the principles outlined above is the necessary con- (a) The artificial cheapening of bread and other food- dition for the reestablishment of public finances on a sound stuffs, and of coal^and other materials by selling them below basis. A country which does not contrive as soon as pos- cost price to the'public, and the provision of unemploy- sible to attain the execution of these principles is doomed ment subsidies of such a character as to demoralize rather beyond hope of recovery. To enable Governments, how- than encourage industry. ever, to give effect to these principles, all classes of the ^ (6) The maintenance of railway^fares, postal rates, and community must contribute their share. Industry must cliarges for other government services on a basis which is be so organized as to encourage the maximum production insufficient to cover the cost of the services given, includ- on the part of capital and labor, as by such production ing annual charges on capital account. alone will labor be able to obtain those improved condi- I VI. In so far as, after every effortJias been made, it is tions of life which it is the aim of every country to secure impossible to cut down expenditure" within the limits of for its people. All classes of the population, and particu- existing revenues, fresh taxation jnust be imposed to meet larly the wealthy, must be prepared willingly to accept the deficit, and this process must be ruthlessly continued the changes necessary to remedy the present situation. until the revenue is at least sufficient to meet the full Above all, to fill up the gap between the supply of and the amount of the ordinary scurrent expenditure. The con- demand for commodities, it is the duty of every patriotic ference considers that the relative advantages of the vari- citizen to practice the strictest possible economy and so to ous possible means of increasing" the national revenue, contribute his maximum effort to the common weal. Such whether by direct or indirect taxation or by a capital levy private action is the indispensable basis for the fiscal (to be devoted to the repayment of debt), depend upon the measures required to restore public finances. special economic conditions obtaining in each country, and that in consequence each country must decide for itself RESOLUTIONS PROPOSED BY THE COMMISSION ON CURRENCY on the methods which are best suited to its own internal AND EXCHANGE. economy. VII. If the above principles are accepted and applied The currency of a country, in the sense of the imme loans will not be required for recurrent ordinary expendi- diate purchasing power of the community, includes (a) ture; borrowing for that purpose must cease. In a number the actual legal tender money in existence, and (6) any of countries, however, although the ordinary charges can promises to pay legal tender, such as bank balances— be met from revenue, heavy extraordinary expenditure which are available for ordinary daily transactions. must at the present time be undertaken on capital account. The currencies of all belligerent, and of many other This applies more especially in the case of those countries countries, though in greatly varying degrees, have since devastated during the war, whose reconstruction charges the beginning of the war been expended artificially, regard- can not possibly be met from ordinary receipts. The res- less of the usual restraints upon such expansion (to which toration of the devastated areas is of capital importance for we refer later) and without any corresponding increase in the reestablishment of normal economic conditions; and the real wealth upon which their purchasing power was loans for thip purpose are not only unavoidable but justi- based; indeed, in most cases, in spite of a serious reduction fiable. But in view of the shortage of capital it will be in such wealth. It should be clearly understood that this artificial and difficult to secure the sums required even for this purpose, u and only the most urgent schemes should be pressed for- unrestrained expansion, or inflation " as it is called, of the ward immediately. currency or of the titles to immediate purchasing power, VIII. The mean3 by which loans are raised are no less does not and can not add to the total real purchasing power important than the purposes for which they are destined. in existence, so that its effect must be to reduce the In future the loans which are required for urgent capital purchasing power of each unit of the currency. It is, in purposes must be met out of the real savings of the people. fact, a form of debasing the currency. But those savings have, as it were, been pledged for many The effect of it has been to intensify, in terms of the years ahead by the credits created during the war, and the inflated currencies, the general rise in prices, so that a first step to raising fresh money must be to fund the un- greater amount of such currency is needed to procure the digested floating obligations with which the markets are accustomed supply of goods and services. Where this burdened. These principles apply both to internal and to additional currency was procured by further "inflation" external borrowing, and in regard to the latter we suggest (i. e.y by printing more paper money or creating fresh that it would be in the general interest for the creditor credit) there arose what has been called a "vicious spiral" countries to give such facilities as may be possible to the of constantly rising prices and wages and constantly in- debtor countries to fund their floating obligations at the creasing inflation, with the resulting disorganization of all earliest possible date. business, dislocation of the exchanges, a progressive in- IX. In order to enlist public interest it is essential to crease in the cost of living, and consequent labor unrest. give the greatest publicity possible to the situation of the I. Therefore: public finances of each State. It is of the utmost importance that the growth of inflation The conference is, therefore, of the opinion that the work should be stopped, and this, although no doubt very diffi- already accomplished by the secretariat in its comparative cult to do immediately in some countries, could quickly study of public finances should be continued, and it sug- be accomplished by (1) abstaining from increasing the cur- gests that the Council of the League of Nations should re- rency (in its broadest sense as denned above), and (2) by in- quest all its members and all the nations represented at creasing the real wealth upon which such currency is based. this conference to furnish it regularly not only with budget The cessation of increase in the currency should not be estimates and final budget figures, but also with a half- achieved merely by restricting the issue of legal tender. yearly account of actual receipts and expenditure. At the Such a step, if unaccompanied by other measures, would same time, countries should be urged to supply as complete be apt to aggravate the situation by causing a monetary information as is possible on the existing system of tax- crisis. It is necessary to address ourselves to the causes ation, and any suggestions which may appear to each underlying the necessity for the additional currency. State to be useful for the financial education of the public The chief cause in most countries is that the Govern- opinion of the world. ments, finding themselves unable to meet their expendi- With the aid of the information thus obtained the League tures out of revenue, have been tempted to resort to the of Nations would be enabled to prepare pamphlets for artificial creation of fresh purchasing power, either by the periodical publication, setting out the comparative finan- direct issue of additional legal tender money or more fre- cial position of the countries of the world, and explaining quently by obtaining—especially from the banks of issue, the various systems of taxation in force. which in some cases are unable and in others unwilling to

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refuse them—credits which must themselves be satisfied Another urgent need is the freest possible international in legal tender money. We say, therefore, that— exchange of commodities. With this another commission II. Governments must limit their expenditure to their revenue. will deal, but we feel that our recommendations here on (We are not considering here the financial operations carried out inflation would not be complete without adding that— in conjunction with the reconstruction of the devastated areas.) VI. Commerce should as soon as possible be freed from III. Banks, and especially banks of issue, should be freed control, and impediments to international trade removed. from political pressure and should be conducted solely on the Equally urgent is the necessity for decreased consump- lines of prudent finance. tion in an impoverished world" where so much has been But the Governments are not the only offenders in this destroyed and where productive power has been impaired. respect; other parties, and especially in pome countries It is therefore specially important at present that, both on the municipalities and other local authorities, have raised public and private account, and not only in-impoverished excessive credits which in the same way multiply the countries, but in every part of the world— titles to purchasing power. VII. All superfluous expenditure should be avoided. Nor will it be sufficient for the purpose of checking fur- To attain this end the enlightenment of public opinion ther inflation that additional issues of legal tender currency is the most powerful lever. If the wise control of credit or the granting of additional credits should cease, since the brings dear money, this result will in itself help to promote floating debts of Government and other authorities con- economy. stitute in themselves a form of potential currency in that, We pass now from inflation and its remedies to the except in so far as they are constantly renewed, their other points submitted to us. * amount will come to swell the total currency in existence; Without entering into the question whether gold is or consequently— is not the ideal common standard of value, we consider it IV. The creation of additional credit should cease and Gov- most important that the world should have some common ernments and municipalities should not only not increase standard, and that, as gold is to-day the nominal standard their floating debts, but should begin to repay or fund them of the civilized world— by degrees. VIII. It is highly desirable that the countries which have In normal times the natural and most effective regulator lapsed from an effective gold standard should return thereto. of the volume and distribution of credit is the rate of inter- It is impossible to say how or when all the older countries est which the central banks of issue are compelled, for the would be able to return to their former measure of effective sake of self-preservation and in duty to the community, gold standard, or how long it would take the newly formed to raise when credit is unduly expanding. It is true that countries to establish such a standard. But, in our opinion— high money rates would be expensive to Governments IX. It is useless to attempt to fix the ratio of existing which have large floating debts, but we see no reason why fiduciary currencies to their nominal gold value; as, unless the community in its collective capacity (i. e., the Gov- the condition of the country concerned were sufficiently ernment) should be less subject to the normal measure for favorable to make the fixing of such ratio unnecessary, it restricting credit than the individual members of the com- could not be maintained. munity. In some countries, however, the financial ma- The reversion to, or establishment of, an effective gold chinery has become so abnormal that it may be difficult standard would in many cases demand enormous deflation for such corrective measure to be immediately applied. and it is certain that such— We recommend, therefore, that— X. Deflation, if and when undertaken, must be carried out V. Until credit can be controlled merely by the normal gradually and with qreat caution; otherwise the disturbance influence of the rate of interest it should only be granted for to trade'and credit might prove disastrous. real economic needs. XI. We can not recommend any attempt to stabilize the It is impossible to lay down any rule as to the " proper value of gold and we seriously doubt whether such attempt rates" of discount or interest for different countries. could succeed; but this question might well be submitted These rates will depend not only on the supply and demand to the committee to which we refer later, if it should be at different times, but also on other factors often of a appointed. psychological nature. It may, indeed, confidently be XII. We believe that neither an international currency nor said that when once the arbitrary increase of inflation an international unit of account would serve any useful pur- ceases and when the banks of issue are able successfully pose or remove any of the difficulties from which inter- to perform their normal functions, rates will find their own national exchange suffers to-day. proper level. XIII. We can find no justification for supporting the idea The complementary steps for arresting the increase of that foreign holders of bank notes or bank balances should be inflation by increasing the wealth on which the currency treated differently from national holders. is based may be summed up in the words: Increased pro- XIV. In countries where there is no central bank of issue, duction and decreased consumption. one should be established, and if the assistance of foreign The most intensive production possible is required in capital were required lor the promotion of such a bank, order to make good the waste of war and arrest inflation, some form of international control might be required. XV. Attempts to limit fluctuations in exchange by impos^ and thus to reduce the cost of living; yet we are witnessing 1 in many countries production below the normal, together ing artificial control on exchange operations are futile and with those frequent strikes which aggravate instead of mischievous. In so far as they are effective they do not ac- help to cure the present shortage and dearness of com- curately reflect the real conditions of the market, tend to modities. When diminution in the Government's de- remove natural correctives to such fluctuations, and inter- mands frees more credits for trade and for the recuperation fere with free dealings in forward exchange which are so of the world, when inflation has ceased and prices cease necessary to enable traders to eliminate from their calcula- to rise, and when the general unsettlement caused by the tions a margin to cover risk of exchange, which would oth- war subsides, it is probable that great improvement will erwise contribute to the rise in prices. Moreover, all Gov- be seen in productive activity. Yet, in our opinion, the ernment interference with trade, including exchange, tends production of wealth is in many countries suffering from to impede that improvement of the economic conditions a cause which it is more directly in the power of Govern- of a country, by which alone a healthy and stable ex- ments to remove, such as various forms of control often change can be secured. imposed by them as a war measure and which has not We support the suggestion that— yet been completely relaxed. In some cases business has XVI. A committee should be set up both for continuing even been taken by Governments out of the hands of the the collection of the valuable financial statistics that have private trader, whose enterprise and experience are a far been furnished for this conference and also the further more potent instrument for the recuperation of the country. investigation of currency policy.

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RESOLUTIONS PROPOSED BY THE COMMISSION ON INTER- IV. The conference is of opinion that in principle the NATIONAL TRADE. resources out of which this assistance is to be provided should be found from the savings of the lending countries I. The international financial conference affirms that and must not result in undue increase of the fiduciary the first condition for the resumption of international circulation—that is to say, in the creation or extension of trade is the restoration of real peace, the conclusion of the a disproportion between means of payment and the genuine wars which are still being waged, and the assured main- requirements of business. tenance of peace for the future. The continuance of the V. The conference believes, on the other hand, that this atmosphere of war and of preparations for war is fatal to assistance can only be effectively accorded to countries the development of that mutual trust which is essential to which are prepared to assist one another in the restoration the resumption of normal trading relations. The security of economic life, and to make every effort to bring about of internal conditions is scarcely less important, as foreign within their own frontiers the sincere collaboration of all trade can not prosper in a country whose internal con- groups of citizens and to secure conditions which give to ditions do not inspire confidence. The conference trusts work and thrift liberty to produce their full results. that the League of Nations will lose no opportunity to VI. The conference does not believe that, apart from secure the full restoration and continued maintenance particular decisions dictated by national interests or by of peace. considerations of humanity, credits should be accorded II. The international financial conference affirms that directly by Governments. the improvement of the financial position largely depends VII. It appears to the conference that one of the chief on the general restoration as soon as possible of good will obstacles to the granting of credits is the absence in borrow- between the various nations; and in particular it indorses ing countries of sufficient security for ultimate repayment. the declaration of the Supreme Council of the 8th March The conference therefore studied with attention in the last "that the States which have been created or enlarged light of the general considerations enumerated above, as a result of the war should at once reestablish full and all the proposals presented with a view to creating guar- friendly cooperation, and arrange for the unrestricted antees which would provide satisfactory security for interchange of commodities in order that the essential exporters. unity of European economic life may not be impaired by The conference has been forced to recognize that no the erection of artificial economic barriers." single system could by itself suffice to provide for the III. The conference recommends that, within such many different needs of the various countries, and that it limits and at such time as may appear possible, each is necessary to indicate a series of measures sufficiently country should aim at the progressive restoration of that elastic to be adapted afterwards to every variety of cir- freedom of commerce which prevailed before the war, cumstances. including the withdrawal of artificial restrictions on, and For these reasons the conference decided to make the discriminations of price against, external trade. following recommendations: IV. The international financial conference expresses its VIII. An international organization should be formed conviction that the instability of the exchanges consti- and placed at the disposal of States desiring to have resort tutes a great hindrance to the resumption of normal inter- to credit for the purpose of paying for their essential national trade. imports. These States Would then notify the assets V. The international financial conference would wel- which they are prepared to pledge as security for the sake come any action which can be taken by the League of of obtaining credit, and would come to an understanding Nations to enable the countries, which under present con- with the international organization as to the conditions ditions can not purchase the necessary supplies for their under which these assets would be administered. reconstruction, temporarily to obtain commercial credits The bonds issued against this guarantee would be used on an approved basis for this purpose. as collateral for credits intended to cover the cost of com- VI. The international financial conference expresses modities. the conviction that the repair, improvement, and eco- A plan based upon these principles is developed in the nomical use of the transport systems of the world, and annex. It has been devised to enable States to facilitate particularly of countries affected by the war, are of vital the obtaining of commercial credits by their nationals. importance to the restoration of international trade. It is easy to see that the scheme is susceptible of develop- ment in various directions, and that some of its provisions RESOLUTIONS PROPOSED BY THE COMMISSION ON INTER- might be adapted so as to facilitate the extension of credit NATIONAL CREDITS. direct to public corporations. A committee of financiers and business men should be I. The conference recognizes in the first place that the nominated forthwith by the Council of the League of difficulties which at present lie in the way of international Nations for the purpose of defining the measures necessary credit operations arise almost exclusively out of the dis- to give practical effect to this proposal. turbance caused by the war, and that the normal working IX. It has been represented to the conference that of financial markets can not be completely reestablished more complete results might be achieved if the bonds used unless peaceful relations are restored between all nations, as collateral were to carry some international guarantee. unless the outstanding financial questions resulting from The conference sees no objection to the further consid- the war are made the subject of a definite settlement, eration of this proposal. The committee referred to in and unless this settlement is put into execution. Paragraph VIII above might usefully consider the con- II. The conference is, moreover, of opinion that the ditions under which it could be applied. revival of credit requires as primary conditions the restora- X. It has also been represented to the conference that tion of order in public finance, the cessation of inflation, an extension on international lines of the existing system the purging of currencies, and the freedom of commercial of export credit insurance would in many instances be of transactions. The resolutions of the Commission on Inter- great value in developing trade with countries where national Credits are therefore based on the resolutions of political and social conditions give rise to an anxiety the other commissions. which is often exaggerated by exporters. The conference III. The conference recognizes, however, that this believes that an extension of this kind is worthy of con- general improvement in the situation requires a consid- sideration, and that it should be examined in detail by erable period of time, and that in present circumstances experts. it is not possible for certain countries to restore their XL The attention of the conference has been called to economic activity without assistance from abroad. This the present svstem of "finishing credits (Veredlungs- assistance is required for periods which exceed the normal kredit)"; that is to say, of credits under which a lien in term of commercial operations. favor of the exporter or a banker is maintained on the raw

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material in all its different stages and upon the proceeds 7. The date of maturitv and the rate of interest to be of the manufactured article. This system has suffered borne by these bonds shall be determined by the partici- greatly owing to the lack in many countries of sufficient pating Government in agreement with the commission. legal protection for the exporter throughout the various 8. The service of these bonds shall be secured out of the stages of importation, manufacture, reexportation, and revenue of the assigned assets. sale. The conference would suggest that the council 9. The assigned assets shall in the first instance be ad- draw the attention of the different Governments to this ministered by the participating Government or by the question, and summon an advisory body of legal experts international commission, as that commission may in each and business men to specify the legislative action which case determine. it would be desirable to take in order to attain the desired 10. The commission shall at any time have the right of object in each of the countries concerned. making direct representations to the Council of the League XII. Apart from the above-mentioned proposals which of Nations as to the desirability of transferring the admin- the conference recommends the League of Nations to istration of the assigned assets either from the commission adopt, and if possible to apply in practice, the conference to the participating Government or from the participating believes that the activities of the league might usefully Government to the commission. be directed toward promoting certain reforms, and collect 11. The decision of the Council of the League of Nations ing the relevant information required to facilitate credit on this question shall be binding. operations. In this connection the conference considers 12. After the preparation of these bonds the participating it well to draw attention to the advantages of making Government shall have the right to loan the bonds to its progress under each of the following heads: own nationals, for use by them as collateral security for (1) Unification of the laws relating to bills of exchange importations. and bills of lading; 13. The bonds shall be made out in such currencies and (2) The reciprocal treatment of the branches of foreign in such denominations as are applicable to the particular banks in different countries; transaction in respect of which they are issued. (3) The publication of financial information in a clear, 14. The participating Government shall be free to take comparative form; or not to take security for the loan of these bonds from the (4) The examination of claims by the holders of bonds nationals to whom they are lent. the interest on which is in arrears; 15. The maturity and the rate of interest of the loan of (5) An international understanding on the subject of the bonds shall be fixed by agreement between the par- lost, stolen, or destroyed securities; ticipating Government and the borrower of the bonds; (6) The establishment of an international clearing house; they need not be the same as the maturity and the rate of (7) An international understanding which would insure interest of the bonds themselves. the due payment by everyone of his full share of taxa- 16. When making application to his Government for a tion and would avoid the imposition of double taxation, loan of these bonds, the importer must furnish proof that at present an obstacle to the placing of investments he has previously obtained from the international commis- abroad. sion express permission to enter into the transaction for XIII. During the course of its deliberations the con- which the bonds are to be given as collateral. ference could not fail to be impressed by the fact that all, 17. Each bond, before it is handed over by the partici- or almost all, of the many proposals submitted for its con- pating Government to the importer, shall be countersigned sideration require at some stage the active intervention of by the commission in proof of registration. the League of Nations. The conference is unanimously 18. Having obtained the consent of the commission and in sympathy with this tendency, and believes that it is received from them the countersigned bonds, the importer desirable to extend to the problems of finance that inter- will pledge these bonds to the exporter in a foreign country national cooperation which the League of Nations has for the period of the transaction. inaugurated, and which it is attempting to promote in 19. The exporter will return to him on their due dates order to improve the general situation and maintain the the coupons of the pledged bonds, and the bonds them- peace of the world. selves on the completion of the transaction. ANNEX. 20. On receipt of the coupons and the bonds respec- 1. In order that impoverished nations, which under tively,the importer will return them to his Government. present circumstances are unable to obtain accommoda- 21. Bonds returned to the participating Government tion on reasonable terms in the open market, may be able shall be canceled and may subsecfuently be replaced by to command the confidence necessary to attract funds for other bonds, either in the same or in a different currency, the financing of their essential imports, an international up to an equivalent amount. commission shall be constituted under the auspice: of 22. The exporter, or if he has pledged the bonds the the League of Nations. institution with which he has repledged them acting on 2. The commission shall consist of bankers and business his behalf, would be free, in the event of the importer not men of international repute, appointed by the council of fulfilling the terms of his contract, to hold until maturity the League of Nations. the bonds given as collateral by the importer, or to sell 3. The commission shall have the power to appoint them in accordance with the custom in his country in case sub commissions and to charge them with the exercise of default. of its authority in participating (interesses) countries or 23. In the second alternative an option of repurchasing groups of countries. the bonds direct must first be given for a short period to the 4. The Governments of countries desiring to participate Government which issued them. shall notify to the commission what specific assets they are 24. If a sale is resorted to and results in a surplus beyond prepared to assign as security for commercial credits to be what is necessary to cover the claims of the exporter upon granted by the nationals of exporting countries. the importer, the exporter shall be held accountable for 5. The commission, after examination of these assets, that surplus to the Government which issues the bonds. shall of its own authority determine the'gold value of the 25. The revenues from the assigned assets shall be credits which it would approve against the security of these applied as follows to the service of the bonds. 26. Out of these revenues, the commission or the par- 6. The participating Government shall then be author- ticipating Government, as the case may be5> shall purchase ized to prepare bonds to the gold value approved by the foreign currencies sufficient to meet at their due date the commission, each in one specific currency to be determined coupons on all bonds any time outstanding in the different on the issue of the bond. foreign currencies.

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27. In addition they shall establish abroad in the appro- Guatemala, Holland, Hungary, India, Italy, Japan, priate currencies a sinking fund calculated to redeem at Latvia, Lithuania, Luxemburg, , Norway, maturity 10 per cent of the bonds outstanding in each of Peru, Poland, Portugal, Roumania, Serb-Croat-Slovene the different countries. State, , Spain, Sweden, Switzerland, United 28. Further, in addition to the amounts provided for Kingdom, United States of America, Uruguay. payment of coupons and for the endowment of the sinking fund, they shall establish out of the assigned revenues a I. REVIEW OF THE SITUATION. special reserve in one or more foreign currencies for the redemption of bonds sold in accordance with paragraph 22. Some of the financial ills from which the world is suf- 29. The amount to be set aside for the special reserve fering are common to all nations. But the severity of the shall in each case be determined by the commission. malady and the effects which it has produced on the body 30. Any surplus remaining at the end of each year after politic have varied immensely in proportion to the degree the provision of these services shall be at the free disposal in which each nation has been immersed in the maelstrom of the participating Government. of the war. In order, therefore, to get a complete and 31. A participating Government shall have the right to balanced picture of the situation, the conference first offer its own bonds as collateral for credits obtained for the devoted itself to hearing an exposition of the financial purpose of importations on Government account. The situation of each of the 39 countries represented. These previous assent of the commission will in these cases also statements constitute Volume III of this report. be required for the particular importations desired by the Certain of the belligerent countries of Europe (Belgium, participating Government. , France, Germany, Great Britain, Greece, Italy, 32. If a participating Government which has been in and Portugal) unable to cover the expenses of the war control of its assigned revenues should fail to fulfill its from their national current revenue, find their balance obligations, the exporter concerned will notify the com- sheet burdened with an enormous volume of both internal mission and the commission will apply to the Council of and external debt, the amount of the latter being still the League of Nations for the transfer of the management of undetermined in the case of Germany. The total external the assigned revenues to the commission. debt of the European belligerents converted into dollars 33. The consent of the commission is necessary whenever at par amounts to about 155 milliard dollars compared with bonds secured on the assigned assets are given as collateral about 17 milliard dollars in 1913, which, even when full and shall as a rule be accorded only for the import of raw allowance is made for the depreciation of money, repre- materials and primary necessities. sents a tremendous burden in proportion to the total na- 34. The commission may, however, at its discretion, tional income of the belligerent countries. The external sanction in advance the importation of specified quantities debt, amounting to about 11 milliard dollars due to the of such goods. United States, to If milliard pounds sterling due to Great 35. Even in the case of imports under such a general Britain, presents an even more difficult financial problem sanction a notification of the particular transaction must because in nearly every case it is payable in a currency be registered with the commission. which is less depreciated than that of the country con- 36. The assent of the commission must also be obtained cerned. in every case to the term of the credit which it is proposed The Government expenditure of these belligerent coun- to open. tries has increased in proportions which vary between 500 and 1,500 per cent, the present figures amounting to be- REPORT OF THE INTERNATIONAL FINANCIAL tween 20 and 40 per cent of the total national income. CONFERENCE. The higher of these percentages represents the expendi- ture of France, which includes in her budget a very large sum for the restoration of her devastated provinces. The president of the conference on October 8 In all cases vigorous efforts have been made to introduce presented the following report: an ordely fiscal system into State finance by the imposition of fresh taxation—mostly in the form of direct taxes—and In accordance with arrangements made by the Council the ordinary revenues are in most cases now equal to or not of the League of Nations the international financial con- far short of the ordinary expenditure. But except in the ference met at Brussels on Friday, September 24, 1920, in case of Great Britain there is still a very large gap between the Chamber of Deputies, which was generously placed at the total income and expenditure. its disposal by the Belgian Government and the president All of these countries have lost a very large propor-. of the chamber. tion of their prewar holdings of gold and have enormously The discussions of the conference, which sat until Octo- increased their paper currencies. This process of inflation, ber 8, have been governed by the resolution passed by the which has been reduced by Great Britain and checked by Council of the League in February, 1920: France, still continues in other countries. Except in the "The League of Nations shall convene an international case of Germany and her allies, whose imports were pre- conference with a view to studying the financial crisis and vented by the blockade, all these countries have during looking for the means of remedying and of mitigating the the war had an enormous excess of imports over exports. dangerous consequences arising from it,'' and by the further This excess increased in some cases after the armistice, instruction approved by the council on August 5, 1920, to but it is now diminishing. Indeed, in almost every case the effect that "none of the questions which are the subject there is now a perceptible growth of exports. of the present negotiations between the Allies and Ger- During the war the exchanges of these countries did not many should be discussed at the conference." reflect their real economic position, as artificial measures The members of the conference, 86 in number, while were in most cases taken to stabilize them; but the ex- appointed by their several Governments, attended as changes rapidly deteriorated when these measures were experts and not as spokesmen of official policy. They given up in 1919. This depreciation continued for 12 were drawn from those with both private and official expe- months. Since the spring of this year there have been rience and the conditions of their appointment permitted appreciable variations, but on the balance the net move- them to give the conference the full benefit of their knowl- ment has been toward improvement. edge and to express their personal opinions with freedom. As a result of the war a number of new States have been The members so attending represented the following 39 created, while certain existing States, some of which were countries: Argentina, Armenia, Australia, Austria, Bel- belligerents, have had their territories profoundly modi- gium, Brazil, Bulgaria, Canada, China, Czecho-Slovakia, fied. Among these are Austria, Czecho-Slovakia, Estho- Denmark, Esthonia, Finland, France, Germany, Greece, nia, Finland, Hungary, Latvia, Lithuania, Poland,

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Roumania, and Serbia. For none of these countries, in terms of that currency has increased. With few excep- except Finland, is there a definite basis of comparison. tions, neutral as well as belligerent countries suspended All of them have received as a legacy of the war extremely the gold basis of their currency. Even where the gold depreciated currencies. In most cases the machinery of basis has been retained the purchasing value of the cur- an orderly State revenue system is not yet in operation, rency has declined, for the value of gold itself in terms of and with enormous expenditure upon food relief, arma- commodities has diminished to about one-half. ments, and in some cases actual war, there is no sign yet In every country international trade has been impeded, of any possibility of a budget equilibrium. In many of dislocated, and diverted from its normal channels. The these countries the printing press is still in operation. inability of Europe to export during the war forced the On the other hand several of them are predominantly normal purchasers of her goods to look elsewhere for their agricultural. Their productive powers may recover rap- requirements, to develop production in unaccustomed idly, and a single good harvest, especially with the present channels at home or in other countries overseas. Simul- high price of food, is likely to strengthen both their finan- taneously Europe's need for imports compelled the sale cial and their economic position. In the case of Austria, of her capital holdings abroad, which are not, therefore, whose economic life has been more completely disinte- now available for her present needs. The instability and grated than elsewhere, the situation is peculiarly difficult. depreciation of exchanges resulting from these and other In the countries of Europe which were neutral during causes have impeded the trade of both seller and buyer. the war, including Denmark, Sweden, Holland, Luxem- Countries with unfavorable exchanges have found it diffi- burg, Norway, Spain, and Switzerland, the position is cult to buy raw materials, and those with favorable ex- essentially different; but the financial difficulties are also changes have found in them an obstacle to the sale of serious. In some cases heavy expenditure was incurred by their exports. With half the world producing less than these countries directly in consequence of the war, and it consumes and having insufficient exports to pay for its they have had largely to increase their internal debt. But imports, credits alone can bridge the gulf between seller in most cases the budget difficulties are due to the growth and buyer, and credits are rendered difficult by the very of Government expenditures caused by the rise of prices causes which make them necessary. Finally, every coun- and the provision of subsidies to prevent this rise pressing try finds impediments to its international trade in the too heavily on the general population. This expenditure new economic barriers which have been imposed during has in some cases been met by increased taxation, but in and since the war. the case of Holland, Switzerland, and Spain there are con- siderable deficits, and in the two latter cases no equilib- II. THE LIMITS OF FINANCIAL REMEDIES. rium is yet in sight. The trade position of these countries Such, in the briefest outline, is the economic and finan- also presents peculiar difficulties. During the war their cial condition of the world which was presented to the trade balances were very favorable, owing to the demand conference in vivid detail by the reports from the 39 for their products from the belligerent nations and the countries attending it. stoppage of their imports. The result was an accumula- The members of the conference were conscious that, tion of gold, which led to an expansion of currency and a limited to the sphere of finance both by their terms of rise of prices almost as serious as that which for entirely reference and their personal qualifications, they could different reasons took place in the belligerent countries. only deal with a part of the problem which faced the Since the war the trade situation has been reversed, as Governments and peoples of the world. these countries have been importing the goods required Finance is, after all, only a reflection of commercial and to replenish stocks, and, owing in part to the premium to economic life—a part only, though an essential part, of its which their exchanges have risen as compared with the mechanism. The wealth of the world consists of the depreciated currencies of the belligerent nations, the products of man's work, and the sum total of human maintenance of their exports has become difficult. To prosperity can be increased only by an increase of pro- some extent, therefore, the favorable factors in the situa- duction. All that any official or organized action can do tion of these countries are actually an embarrassment. is to create conditions which are favorable to production, The countries outside Europe have on the whole the and of those the most important fall outside the sphere of most favorable economic position. Though special con- finance. ditions affect certain of them, especially China, in general First and foremost, the world needs peace. The con- it may be said that they have benefited by the ready dis- ference affirms most emphatically that the first condition posal of their products to the nations of Europe. Their for the world's recovery is the restoration of real peace, trade balances have been very favorable, and their ex- the conclusion of the wars which are still being waged, changes have improved relatively to those of European and the assured maintenance of peace for the future. The countries. They have in many cases been able to pay off continuance of the atmosphere of war and of preparations a large proportion of their external debts and, on the other for war is fatal to the development of that mutual trust hand, have made large loans to their former creditors. which is essential to the resumption of normal trading This is particularly the case with the United States, to relations. whom most of the countries of Europe are now heavily The world must resolve the rivalries and animosities indebted. But, as in the case of European neutrals, their which have been the inevitable legacy of the struggle by accumulation of gold has led to a rise in prices and has which Europe has been torn. This the conference ven- rendered more difficult the maintenance of the volume of tures to hope is no vain aspiration. The fact that for the their exports. Their future economic position, therefore, first time since 1914 representatives of belligerents and is vitally dependent on the restoration of the purchasing neutrals alike have met in conference is a good omen for power of their European customers. It must also be kept the future. The world needs the inauguration of a new in view that many of these countries, especially in the era of cooperation and good will between nations if it is to new hemisphere, have immense unfulfilled demands for repair the destruction of those years of struggle, if indeed capital expenditure, and the world-wide shortage of capital it is ever to secure the survival of its civilization. at the present time constitutes a serious handicap to their If the first condition of recovery is peace between the development. countries of the world, the next is peace within each of It is noteworthy, however, that, different as are the con- them and the establishment of conditions which will allay ditions in these different groups of countries, certain fea- the social unrest that is at present impeding and reducing tures are common to practically every country of the production and which will restore social content and with world as a consequence of the destruction and dislocation it the will and the desire to work. of the war. In every country the purchasing power of the Among the conditions, however, which are essential if national currency has diminished and the cost of living a maximum production is to be attained is the existence

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of a system which facilitates the exchange of commodi- The conference moreover strongly indorses the declara- ties and their equitable distribution, and within this third tion of the supreme council of the 8th of March last, "that sphere lies the task of finance and the especial problems the States which have been created or enlarged as the which the conference has had to consider. result of the war should at once reestablish full and friendly cooperation and arrange for the unrestricted interchange III. RECOMMENDATIONS OF THE CONFERENCE. of commodities in order that the essential unity of Euro- pean economic life may not be impaired by the erection The conference divided the work, involved in the ex- of artificial economic barriers." Each country should amination of these problems into four parts and intrusted aim at the progressive restoration of that freedom of com- special commissions of its members with the task of making merce which prevailed before the war, including the a detailed study and preparing specific recommendations withdrawal of artificial restrictions on, and discriminations with regard to (a) public finance and (6) currency and of price against, external trade. exchange, (c) international trade and commerce, and (d) international action with special reference to credits. REVENUE AND EXPENDITURE. The recommendations of these committees which have been unanimously approved by the conference are given Where it is impossible to keep expenditure within the in full at the end of this report and they require to be limits of existing revenue fresh taxation must be imposed considered as a whole with the detailed arguments on to meet the deficit, and this process must be ruthlessly which they are based. continued until the revenue is at least sufficient to meet The substance of these recommendations may be sum- the full amount of the recurrent ordinary expenditure. marized as follows: The relative advantages of the various possible methods of taxation depend on the special economic conditions obtaining in each country, and each country must decide GENERAL FINANCIAL CONSIDERATIONS. for itself on the methods best suited to its own internal The first step is to bring public opinion in every country economy. to realize the essential facts of the situation and particu- In future the loans which are required for urgent capital larly the need of reestablishing public finances on a purposes must be met out of the real savings of the people. sound basis as a preliminary to the execution of those But these savings have, as it were, been pledged for many social reforms which the world demands. years ahead by the credits created during the war, and Nearly every Government is being pressed to incur the first step to raising fresh money must be to fund the fresh expenditure, largely on palliatives which aggravate undigested floating obligations with which the markets the very evils against which they are directed. The are burdened. country which accepts the policy of budget deficits is CESSATION OF INFLATION. treading the slippery path which leads to general ruin; to escape from that path no sacrifice is too great. It is of the utmost importance that the growth of " infla- The statements presented to the conference show that tion" should be stopped. It should be clearly understood on an average some 20 per cent of the national expendi- that this artificial and unrestrained expansion of the cur- ture is still being devoted to the maintenance of arma- rency does not and can not add to the total real purchasing ments and to preparations for war. The conference power in existence, so that its effect must be to reduce the desires to affirm with the utmost emphasis that the world purchasing power of each unit of the currency. Inflation can not afford this expenditure. Only by a frank policy is in fact an unscientific and ill-adjusted method of tax- of mutual cooperation can the nations "hope to regain their ation. old prosperity, and to secure that result the whole resources The effect of it has been to intensify, in terms of the of each country must be devoted to strictly productive inflated currencies, the general rise in prices, so that a purposes. The conference accordingly recommends most greater amount of such currency is needed to procure the earnestly to the Council of the League of Nations the accustomed supplies of goods and services. Where this desirability of conferring at once with the several Gov- additional currency was procured by further "inflation"— ernments concerned, with a view to securing a general i. e., by printing more paper money or creating fresh and. agreed reduction of the crushing burden which, on credit—there arose what has been called a "vicious their existing scale, armaments still impose on the im- spiral" of constantly rising prices and wages, and con- poverished people of the world, sapping their resources stantly increasing inflation with the resulting disorganiza- and imperiling their recovery from the ravages of war. tion of all business, dislocation of the exchange, a pro- The conference hopes that the assembly of the league gressive increase in the cost of living and consequent which is about to meet will take energetic action to this labor unrest. end. It is highly desirable that the countries which have It is also of the greatest importance that every Govern- lapsed from an effective gold standard should return ment should abandon at the earliest practicable date all thereto. It is impossible to say how or when all the uneconomical and artifical measures which conceal from older countries would be able to return to their former the people the true economic situation. measure of effective gold standard or how long it would To enable Governments, however, to give effect to the take the newly formed countries to establish such a principles of sound finance all classes of the community standard. But in the opinion of the conference it is use- must contribute their share. Industry must be so or- less to attempt to fix the ratio of existing fiduciary curren- ganized as to encourage the maximum production on the cies to their normal gold value. Unless the condition of part both of capital and of labor, as by such production the country concerned was sufficiently favorable to make alone will those improved conditions of life be obtained the fixing of such a ratio unnecessary, it could not be which it is the aim of every country to secure for its people. maintained. All classes of the population, and particularly the wealthy, The reversion to, or establishment of, an effective gold must be prepared willingly to accept the charges neces- standard by any means other than devaluation would in sary to remedy the present situation. Above all, to fill many cases demand enormous deflation, and it is certain up the gap between the supply of and the demand for that such deflation, if and when undertaken, must be commodities, it is the duty of every patriotic citizen to carried out gradually and with great caution, otherwise practice the strictest possible economy and so to con- the disturbance to trade and credit might prove disastrous. tribute his maximum effort to the common weal. Such The conference does not recommend any attempt to private action is the indispensable basis for the fiscal stabilize the value of gold and gravely doubts whether measures required to restore public finances. any such attempt could succeed. It believes that neither

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an international currency nor an international unit of FINISHING CREDITS. account would serve any useful purpose or remove any of the difficulties from which international exchange The attention of the conference has also been called to suffers to-day. the present system of "finishing credits"—that is to say, of credits under which a lien in favor of the exporter or a CENTRAL BANKS OF ISSUE. banker is maintained on the .raw material in all its different stages and upon the proceeds of the manufactured article. The conference is of opinion that in countries where The council of the league is recommended to draw the there is no central bank of issue, one should be established, attention of the different Governments to this question and if the assistance of foreign capital were required for and to summon an advisory body of legal experts and busi- the promotion of such a bank, some form of international ness men to specify the legislative action needed to attain control might be necessary. the desired object in each of the countries concerned. Attempts to limit fluctuations in exchange by imposing artificial control on exchange operations are futile and mischievous. In so far as they are effective they falsify MISCELLANEOUS PROPOSALS. the market, tend to remove natural correctives to such Apart from the above-mentioned proposals, the confer- fluctuations and interfere with free dealings in forward ence believes that the activities of the league might use- exchange which are so necessary to enable traders to fully be directed toward promoting certain reforms and eliminate from their calculations a margin to cover the collecting the relevant information required to facilitate risks of exchange, which would otherwise contribute to credit operations. In this connection the conference con- the rise in prices. siders it well to draw attention to the advantages of making EXTERNAL CREDITS. progress under each of the following heads: Unification of the laws relating to bills of exchange and bills of lading. The conference recognizes, however, that any general The reciprocal treatment" of the branches of foreign improvement in the situation requires a considerable banks in different countries. period of time, and that in present circumstances it is The publication of financial information in a clear, not possible for certain countries to restore their economic comparative form. activity without assistance from abroad. This assistance The examination of claims by the holders of bonds, the is required for periods which exceed the normal term of interest on which is in arrear. commercial operations. An international understanding on the subject of lost, This assistance, however, can only be effectively accorded stolen, or destroyed securities. to countries which are prepared to cooperate with one The establishment of an international clearing house. another in the restoration of economic life and to make An international understanding which, while insuring every effort to bring about within their own frontiers the the due payment by everyone of his full share of taxation, sincere collaboration of all groups of citizens and to secure would avoid the imposition of double taxation which is conditions which give to work and thrift liberty to produce at present an obstacle to the placing of investments their full results. abroad. The conference does not believe that apart from the It will be seen that these recommendations involve both particular decisions dictated by national interests or by internal action by the several Governments and also considerations of humanity, credits should be accorded international cooperation. For the measures taken in directly by governments. their respective countries the several Governments are and must, of course, remain responsible, though on cer- NEW CREDIT ORGANIZATION. tain questions the conference has ventured respectfully to tender to them its advice. The conference makes the following recommendations: The conference is unanimous, however, in believing An international organization should be formed and placed that national action is not by itself sufficient. Inter- at the disposal of States desiring to have resort to credit national cooperation, of which the conference itself is the for the purpose of paying for their essential imports. first effort and example, must continue and develop, and These States would then notify the assets which they are in this the League of Nations must take the initiative. prepared to pledge as security for the sake of obtaining The specific recommendations now made, such as the these credits and would come to an understanding with proposal to form a new international credits organization, the international organization as to the conditions under are only instances of the measures of international coopera- which these assets would be administered. tion which require to be elaborated in more detail. The bonds issued against this guaranty would be used The work of the present conference has been a com- as collateral for credits intended to cover the cost of mencement only. It will be necessary to follow up the commodities. diagnosis now arrived at by a systematic study of the A plan, the details of which are set out in the annex comparative progress made in the solution of the present to this report, *is unanimously recommended by the difficulties and by continued collaboration in devising conference, which considers that a committee of financiers new proposals to meet new circumstances as they develop. and business men should be nominated forthwith by For this purpose and for the work of a continuous character the Council of the League of Nations for the purpose of which each of the commissions lias recommended within defining the measures necessary to give practical effect to its own sphere, a permanent organization will be neces- this proposal. sary, and it may be desirable for the conference itself to meet again at a later date. EXPORT CREDIT INSURANCE. In this connection, the terms of reference of the present conference were, as already stated, limited by the council An extension on international lines of the existing of the league. The conference has never sought to over- system of export credit insurance would also in many step the limits which the Council of the League of Nations instances be of great value in developing trade with coun- set to the scope of its deliberations. It, however, feels tries where the uncertainty of political and social condi- justified in associating itself with the hope expressed by tions give rise to a lack of confidence. The conference M. Leon Bourgeois in his report to the council of April believes that an extension of this system is worthy of con- 5 last, to the effect that the economic uncertainty which sideration and that it should be further examined in detail besets alike the countries which are entitled to receive by experts. and the countries which are under an obligation to pay

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reparation claims may speedily be removed, since the confirmed by the present Secretary of the Treasury, Mr. settlement of this question is indispensable not only for Houston, shortly after he took office, and so 1 do not go the reconstruction of the countries devastated by the beyond my authority for a statement of our governmental war—a matter of capital importance to the reestablish- position with regard to the possibility of Government loans ment of Europe's economic equilibrium—but also for the and refer you to those authorized Government state- recovery of the States on whom the burden of this repara- ments. Beyond that there will always be the friendly tion lies. and charitable spirit of the American people; that has been enormous, it continues, and my personal faith is that it will IV. THE UNANIMOUS CHARACTER OF THE RECOMMENDA- continue, and yet, after all, the result of charity can but TIONS. be small. Further, there is the possibility of relations in ordinary business ways. America is a business nation, Some of the recommendations of the conference may America is always ready for business, and America will appear axiomatic in character rather than original contri- be ready to do business even more than she is now doing butions to the financial problem of the world. Their with Europe whenever conditions are such that business adoption, however, would mean a fundamental change in can be done, but at present it is my personal view that the policies of the great majority of European countries. Americans will find it difficult to convince themselves in It may, for example, seem almost a platitude to say that large numbers and to great amounts that Europe under it is essential that Governments should meet their ordinary present conditions is a good business risk. I ask you, current expenditure out of their ordinary current revenue, gentlemen, to bear in mind first that Americans as a whole and that, if they do not do so, the inflation and an increased have never accustomed themselves to sending their money cost of living are inevitable. In nearly 3 out of 4 of the into foreign countries; that is an unfortunate fact from the countries represented at the conference, however, and in present point of view. We, as individuals who have sur- nearly 11 out of 12 of European countries, budgets do not pluses to invest, have always found opportunities for in- at present balance and many of them show no prospect of vestment at home and have never grown into the habit doing so in the near future. largely of sending our money abroad. When you add to In these circumstances the recommendations made col- that the fact that Europe has gone through this terrible lectively and unanimously by the conference may perhaps war and recognize the conditions which one sees in Europe, claim a special force and significance. you have in your mind's eye a picture of conditions which The members of the conference venture to call special will enable you as financiers to see something in the way attention to the way in which, selected by the Govern- in which Americans regard investment abroad; and yet ments of 39 countries representing about 75 per cent of that investment is now going on and will continue to go the population of the world, they have been able through on, but only to the extent that our business men find it is this fortnight's discussion to arrive at a general agreement justified by the conditions. Our business men will see as to the main features of the world's economic and finan- that it is justified by the conditions as they see and realize cial position, and some at least of the most important how much Europe is actually doing now and has done measures urgently required for its restoration. They already to readjust these conditions, and as they see a therefore have been able to give to their suggestions the growing feeling of harmony and unity among these sepa- force of collective and unanimous recommendations. rated States in Europe. Whatever may be the future of our positive proposals, If America could see advance toward something in the the conference can not have been in vain. It has been a way of economic union among the different States of gathering unique in the history of the world. It has not Europe; if America could see gradually coming about a been a gathering of statesmen, working at the solution of decrease in the hostility which reigns to a large extent political difficulties in the interest of their particular among these different States, you would then find the countries; it has been a gathering of experts from all psychology of the American business man very much nations working for the solution of the common problem changed as to conditions over here. The contrast between of the whole world. Such differences and divergencies these States over in Europe, separated by customs bound- of view as may have existed were brought to the common aries, separated by laws of demarkation between different stock, and all alike have benefited by the interchange of nationalities jealous of each other, separated in every views which resulted. As the work of the conference and way—the contrast, I say, between that condition of things its commissions proceeded, there developed a spirit of close and the state of things which exists between our States of and intimate cooperation such as might scarcely have the United States is a striking one to the American. He been thought possible. That cooperation is in itself a sees how the absence of these boundaries enables the factor of the utmost importance. Each country has had United States to do business from the Atlantic to the the opportunity of presenting to the rest of the world its Pacific, from the boundary of Mexico to the boundary of special difficulties, its particular anxieties, and all have Canada, and how much that facilitates the ordinary inter- contributed toward finding a solution. change of business commodities and all the relations of life. He sees contrasted with that, over here in Europe, REMARKS OF THE AMERICAN REPRESENTATIVE. the different States, each working largely for itself and all failing to work in harmony. When you see growing out of this situation something more in the way of union An extract from the remarks of Mr. Boyden, among the States in Europe you will see this change of unofficial representative of the United States which I speak, in the psychology of the American business of America, at the afternoon session of Tuesday, man. And this conference, gentlemen, will have some- September 28, of the International Financial thing to do toward leading to that state of things. The fact that you gentlemen representing these different Conference, held in Brussels, 1920, is printed countries are able to gather in this hall and talk together below: in the friendly spirit in which you are talking, and will * * * I can refer the gentlemen present, many of talk, will aid in that. The fact that the league has whom have doubtless in their minds the possibility of invited here representatives of the nations who were aid in the way of credit or otherwise from the United vanquished in this war will help America to appreciate States, to the policy of our Government in that respect, that there is a chance that Europe may get together. I which has been expressed in the letter from Mr. Glass, congratulate the league on the fact that it has taken this which is contained in the first printed document which step and that we are to-day to listen to the representatives was presented to this conference. That letter ex- of the vanquished nations. When a struggle like this has presses the official opinion of our Treasury. It was ended it is for the victors to go more than half way, and I

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am glad that the league has done something in the way best information available relative to retail of going to meet those men against whom we were fighting as we believe for correct principles. That union, gentle- price changes. It would appear that informa- men, will come. One of the members spoke yesterday of tion covering price changes at six months in- the fact that union in South Africa had brought about terval would be sufficient for the purpose at good results. We in America always have in our minds hand. the fact that some 60 years ago our country was divided over a fight regarding principles which were held sacred Determination of proportion of expenditures both by the North and by the South, and that to-day our for various purposes.—A questionnaire was pre- country is as united as any country in the world, and that pared and distributed to all employees of Fed- the ravages and passions which were aroused by that time eral Reserve Banks receiving salaries of less have disappeared. So we look forward to something of that kind. It will take time, but we hope that all you than $5,000 per annum, requesting certain in- gentlemen will take away from this convention this idea, formation relative to expenditures for the cal- that cooperation in Europe is one of the foundation prin- endar year 1919. The questionnaire was di- ciples of European rehabilitation; that the spirit of good vided into two sections, one to be filled in by will is an economic principle which it is worth while for this convention to emphasize; and that this convention married individuals, heads of families, and all may well take for one of its mottoes, for one of its reso- others who for one reason or another could best lutions, the language which you all see behind the Presi- give the expenditures of a family group rather dent, 'Tunion fait la force." than their own individual expenditures, the other to be used by those giving their own indi- vidual expenditures. Allowing for the discard Adjusting Salaries of Bank Employees to Meet of faulty schedules, the following are the total Changes in the Cost of Living. number of schedules which were found usable: The following is a description of a plan de- vised for ascertaining changes in the cost of Individuals. living of bank employees, with a view to afford- Federal Fami- Not living at Total. ing a basis for changes in salaries in accordance Reserve lies. home. Living at home. with such changes in the cost of living. It is district. based upon certain information obtained by Males. Females. Males. Females. the Division of Analysis and Research in a study made some time ago and represents in 1 . 115 11 11 86 149 372 substance part of the report of the division. 2 819 51 71 401 806 2,148 3 79 7 11 33 48 178 The problems involved in measuring changes 4 . 144 24 27 97 172 464 5 59 11 41 60 124 295 in the cost of living are twofold. 6 . 57 22 20 32 41 172 7 227 20 38 66 105 156 (1) The determination of changes in prices 8 . 100 22 30 45 76 273 of various classes of consumption goods, and 9 . 40 17 19 31 57 164 10 70 17 31 32 40 190 (2) The determination (in order to give 11 97 45 21 35 22 220 proper weighting to such price changes) of the 12 94 12 26 16 40 188 percentage of the total expenditures of a typical Total... 1,901 259 346 934 1,680 5,120 family or individual going toward food, rent, clothing, etc., in each salary group which is A basis was thus afforded for determining considered. Any single set of such figures the proportionate expenditures for each pur- would, of course, be confined to one locality, pose in each of the cities in which Federal Re- but the method would be substantially accu- serve Banks are located. The salary groups rate and would be applicable to other sections which were employed are as follows: as well. It should be noted that this study does not Under $600. $2,400 and under $2,700. $600 and under $900. $2,700 and under $3,000. consider the extent to which salaries in the $900 and under $1,200. $3,000 and under $3,300. past have been adjusted to changes in the cost $1,200 and under $1,500. $3,300 and under $3,600. of living, nor does it attempt to compare pres- $1,500 and under $1,800. $3,600 and under $3,900. ent salaries with any minimum cost of living $1,800 and under $2,100. $3,900 and over. standard, such as has been prepared by the $2,100 and under $2,400. Bureau of Labor Statistics for Washington, Little dependency is to be placed on the in- D. C, as well as for various coal mining centers. formation relative to individuals in the salary Measurement of price fluctuations.—The Bu- groups under $600, for the reason that the ma- reau of Labor Statistics has been preparing at jority of these employees were of working age intervals of six months reports showing per- only a part of the calendar year 1919, and thus centage price changes since December, 1914, of for the major part of the year they were not the various classes of consumption goods, working, but usually attending school. The namely, food, rent, clothing, etc., for fourteen returns from those who gave family expendi- or more cities throughout the United States. tures have been tabulated separately. The It is thought that this material furnishes the returns from those who gave their individual

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expenditures have been divided (1) on the basis ployees in general. For any one of these cities of whether the individual was living with the then, were it desired by an individual institu- immediate family or nearest relatives, (2) by tion to follow changes in the cost of living, it sex. In the case of those who live with the would be necessary to take the price changes family or nearest relatives it would have been furnished by the Bureau of Labor Statistics at impossible to separate food from rent cost, so six months intervals, and to weight these ac- that the individual was therefore asked to give cording to the percentage distribution of ex- the sum paid regularly each week to the family penditures shown for the employees of the par- in lieu of board and lodging, and the amount ticular salary group under consideration. In spent for food outside of the home. In tabu- this manner it would be possible to obtain lating these returns these two items were added changes for the entire employees of the institu- and the resulting figures entitled uiood and tion receiving less than $5,000 per annum. rent." The following figures for the Federal Reserve This information relative to expenditures of Bank of New York show the general character employees of Federal Reserve Banks should be of the data, and are representative of the re- representative of the expenditures of bank em- sults obtained. Analysis of returns on questionnaire relative to expenditures during calendar year 1919 of employees of the Federal Reserve Bank of New York. SECTION I. RETURNS OF THOSE WHO GAVE EXPENDITURES FOR THE FAMILY GROUP RATHER THAN FOR THEM SELVES INDIVIDUALLY (MAJORITY FOR THE WHOLE OR A PART OF THE YEAR WERE MARRIED AND LIVING WITH HUSBAND OR WIFE, OR WERE THE MAJOR SUPPORT OF THE FAMILY GROUP IN WHICH THEY LIVED).

Expenditures! or—

Furniture and Rent. Heat and light. Food. Clothing. house furnish- x Miscellaneous. Total Num- ing expend- Salary group. ber of itures, cases. Per Per Per Per Per Per average cent cent cent cent cent cent ainoi] nt Average of total Average of total Average of total Average of total Average of total Average of total amount. ex- amount. ex- amount. ex- amount. ex- amount. ex- amount. ex- pend- pend- pend- pend- pend- pend- iture. iture. iture. iture. iture. iture.

$600 and under $900 7 $291 26.5 $50 4.5 $419 38.1 $179 16.2 $4 .4 $158 14.3 $1 101 $900 and under $1,200 26 349 22.2 60 3.8 677 43.0 212 13.4 31 1.9 248 15.7 1*577 $1,200 and under $1,500... 68 339 18.6 73 4.0 821 45.0 236 13.0 111 6.1 244 13.4 1,824 $1,500 and under $1,800... 95 334 17.3 73 3.8 878 45.4 276 14.3 92 4.8 283 14.6 1,936 $1,800 and under $2,100... 166 379 17.4 77 3.6 924 42.3 294 13.5 147 6.7 362 16.6" 2,183 $2,100 and under $2,400... 182 436 17.9 84 3.4 960 39.4 369 15.1 135 5.5 453 18.6 2,437 $2,400 and under $2,700... 99 463 17.9 84 3.2 1,035 40.1 398 15.4 141 5.5 463 17.9 2,584 $2,700 and under $3,000... 57 476 15.8 95 3.2 1,206 39.9 516 17.1 184 6.1 544 18.0 3,021 $3,000 and under $3,300... 49 491 15.6 127 4.0 1,177 37.4 534 16.9 264 8.4 557 17.7 3,150 $3,300 and under $3,600... 20 641 19.4 126 3.8 1,076 32.5 552 16.7 159 4.8 757 22.9 3,311 $3,600 and under $3,900... 18 543 15.4 123 3.5 1,297 36.7 549 15.6 129 3.7 891 25.2 3,532 $3,900 and over 32 633 14.6 118 2.7 1,557 35.9 722 16.7 215 5.0 1,091 25.2 4,336

SECTION II. RETURNS OF THOSE WHO GAVE THEIR EXPENDITURES AS INDIVIDUALS RATHER THAN FAMILY EXPENDITURES. CLASSIFIED BY SEX. A.—Returns of those who, for the major portion of the pear, did not live with immediate family or nearest relatives. Expenditures for—

Rent. Food. Clothing. Miscellaneous. Total Number expend- Salary group. of cases. itures, Per cent Per cent Per cent Per cent average Average of total Average of total Average of total Average of total amount. amount. expend- amount. expend- amount. expend- amount. expend- iture. iture. iture. iture.

MALE. Under $600 $317 19.7 $599 37.3 $257 16.0 $433 26.9 $1,606 $600 and under $900 182 23.7 304 39.4 133 17.3 151 19.6 770 $900 and under $1,200 171 14.6 540 46.0 194 16.6 268 22.9 1,173 $1,200 and under $1,500.. 255 17.3 613 41.5 198 13.4 412 27.8 1,478 $1,500 and under $1,800.. 348 22.2 632 40.4 238 15.3 ! 346 27.1 1,564 $1,800 and under $2,100.. 358 19.4 615 33.3 229 12.4 644 34.9 1,846 $2,100 and under $2,400.. 341 17.8 743 38.7 296 14.4 559 29.2 1,919 $2,400 and over 524 18.3 929 32.4 316 11.0 1,097 38.3 2,866

FEMALE. Under $600. 20.9 550 31.2 22.0 459 26.0 1,765 $600 and under $900 212 19.1 380 34.3 222 20.1 294 26.6 1,108 $900and under $1,200.... 246 20.6 452 38.0 267 22.4 226 19.0 1,191 $1,200 and under $1,500.. 333 23.5 485 34.2 274 19.3 327 23.0 1,419 $1,500 and under $1,800.. 298 20.3 512 35.0 284 19.4 374 25.5 1,468 $1,800 and under $2,100.. 443 26.8 548 33.1 360 21.8 303 18.3 1,654 $2,100 and under $2,400.. 352 19.2 501 27.3 300 16.4 682 37.1 1,835 $2,400 and over 468 22.9 728 35.6 465 22.7 384 18.8 2,045

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SECTION II. RETURNS OF THOSE WHO GAVE THEIR EXPENDITURES AS INDIVIDUALS RATHER THAN FAMILY EXPENDITURES. CLASSIFIED BY SEX-Continued. B.—Returns of those who, for the major portion of the year, lived with immediate family or nearest relative.

Expenditures for—

Total Food and rent. Clothing. Miscellaneous. expendi- Salary group. N umber tures, of cases. average Per cent Per cent Per cent amount. Average of total Average oitotal Average of total amount. expendi- amount. expendi- amount. expendi- ture. ture. ture.

Under $600 16 $612 58.1 $205 19.5 $236 22.4 $1,053 $600 and under $900 54 601 55.4 216 19.9 268 24.8 1,085 $900 and under $1,200... 130 681 58.8 215 18.5 263 22.7 1,159 $1,200 and under $1,500. 79 814 57.9 247 17.5 346 24.6 1,407 $1,500 and under $1,800. 61 934 59.0 250 15.8 401 25.3 1,585 $1,800 and under $2,100. 33 1,081 57.2 277 14.7 533 28.2 1,891 $2,100 and under $2,400. 19 1,073 54.2 281 14.2 626 31.6 1,980 $2,400 and over 9 1,306 54.1 290 12.0 818 33.9 2,414

Under $600 19 454 50.9 30.1 170 19.1 892 $600 and under $900 94 520 51.)0 306 30.0 193 19.0 1,019 $900 and under $1,200... 477 606 51.7 339 29.0 226 19.3 1,171 $1,200 and under $1,500., 170 722 52.8 369 27.0 277 20.2 1,368 $1,500 and under $1,800.. 34 804 50.8 406 25.7 374 23.6 1,584 $1,800 and under $2,J00.. 7 849 50.0 427 25.2 422 24.8 1,694 $2,100 and under $2,400.. 3 862 48.0 460 25.6 472 26.3 1,794 $2,400 and over 2 781 42.6 358 19.5 697 38.0 1,836

Gold Reserves of Principal Banks of Issue, 1910- is not included in this table because no recent 1920. figures are at hand. Aggregate gold holdings show an increase In the table below are shown the amounts of 3,075 millions, or about 97 per cent, for of gold reserves held by the banks of issue and the seven-year period. This growth of gold by the Governments of the leading countries of reserves in central institutions represents in the world, the amounts held by the Govern- part the result of efforts made by the Govern- ments being limited to the gold held as reserve ments to withdraw gold from general circula- against currency. The table is in continuation tion and to concentrate it in the banks of issue, of one published in the FEDERAL RESERVE where it supports fiduciary currency and also BULLETIN for February, 1919, page 140. The is available when international gold payments figures represent actual vault holdings, exclu- are to be made. sive of gold held abroad and of foreign credits. Most of the allied countries show gains in Figures for the United States include: gold, though Italy, Belgium, Rumania and (1) Amounts of gold held in the Treasury Canada report smaller amounts than seven of the United States at the end of the calendar years earlier. The largest increases in gold year and reported among the free assets of the holdings in this group are shown for the United Government, i. e., exclusive of gold cover for States, England, and Japan. gold certificates outstanding, also of amounts The German Reichsbank shows a loss of 19 of gold held for redemption of Federal Reserve millions of gold between , 1913, notes. and October 23, 1920. This decrease below the (2) Amounts of gold held by the national prewar amount is not, however, a measure of banks and reported in their statements to the the loss of gold by Germany. When the war comptroller nearest the close of the years 1910- broke out gold was gathered into the vaults 1916. Of the clearing-house certificates re- of the central bank from all over the country, ported by the national banks 60 per cent was the aggregate holdings of the Reichsbank estimated to represent gold. reaching 600 millions at the end of 1916. Dur- (3) At the close of 1914-1920 gold holdings ing the summer of 1917 and the spring of 1918 of the Federal Reserve Banks. These hold- considerable shipments of gold were made by ings are exclusive of the amounts of gold held the Reichsbank to neighboring neutral coun- by foreign agencies, but include amounts of tries to pay for food and other supplies and to the banks' and agents' redemption funds held improve the exchange position of the mark, so in the Treasury. that by the middle of September, 1918, the gold A summary of the figures showing gold holdings of the Reichsbank had decreased to holdings in 1913 and in 1920, by countries 559 million dollars. Following the Brest-Lit- arranged in groups, is shown below. Russia vosk treaty about 50 millions of gold were

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added to the Reichsbank's gold reserves, which was transferred to Russia for safekeeping reached a total of 607 millions at about the time during the German invasion, and has not yet of the armistice (Nov. 7, 1918). Since then the been returned. Reichsbank has lost about 340 millions, a large All the neutral countries show large gains portion of which was paid out for food after the in gold for the period, the aggregate gain being lifting of the allied blockade. A loss of 206 about 1,034 millions. The largest additions millions shown for the Austro-Hungarian Bank to gold reserves among neutral countries are represents chiefly gold transferred to Germany reported by Spain, Netherlands, and Argentina. and figuring among the gold accretions of the Reichsbank during the early period of the war. Central gold reserves of leading countries, 1920 and 1913. In the case of Russia the latest available figures [In millions of dollars.] are for 1917; since that time large amounts of Change between the gold have left the country, and there are no 1913 and 1920. reliable figures as to the amounts still in Russia. Country. 1920 1913 Shipments of gold to obtain credits in Great Increase. Decrease. Britain for the purchase of war materials be- tween October, 1914, and the early part of 1917 Total 6,256 3,181 3,075 decreased the Russian stock of gold by about Allied countries, total 4,436 2,170 2,266 330 million dollars. Gold to the amount of 333 United States 2,098 692 1,406 England 738 170 568 million dollars is known to have fallen into the France 683 679 4 hands of the Kolchak Government, about 123 Italy- 204 288 84 Belgium 51 59 8 millions of which was paid for military supplies Rumania 29 29 Canada 95 115 20 to Allied Governments and to an Anglo-Ameri- Japan 451 65 386 can syndicate. Part of the remaining 210 mil- India 116 73 43 lions was recaptured by Bolshevik troops. Central Powers, total 305 530 225 From the above data, published by the former Germany 260 279 19 Russian assistant minister of finance, Novitsky, Austro-Hungary 45 251 206 in the New York Times of July 4, 1920, it Neutral countries, total 1,515 4ST 1,034 appears that the Bolshevik authorities at one Sweden 76 27 49 time or another controlled, in addition to over N orway 39 13 26 Denmark 61 20 41 60 millions of Rumanian gold, between 400 N etherlands 256 61 195 and 500 millions of gold formerly held by the Spain . 474 92 382 Switzerland 104 33 71 Russian State Bank. Practically the entire Argentina 416 225 191 gold reserve of the Rumanian Central Bank Java.'. 89 10 79

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Movement of the gold reserves of the principal countries, 1910-1920.

[In thousands of dollars.]

United Italy; note States Bank of reserves Treasury, England Russian of the 3 German Austro- national and cur- Bank of State banks of Bank of Reichs- Hungarian Bank of Bank of banks, and France. issue and Belgium. Sweden. Norway. Federal rency note Bank. of the bank. Bank. Reserve reserves. National Banks. Treasury.

Dec. 31— 1910 644,443 152,892 632,924 634,300 273,991 39,816 157 267,543 21,535 9,711 1911 658,925 157,860 618,855 648,500 288,515 48,092 173 261,732 22,758 10,844 1912 661,543 147,594 619,009 683,900 294,803 55,423 184 245,113 26,816 10,814 1913 691,514 170,245 678,856 786,800 288,103 59,131 278 251,421 27,372 12,846 1914 827,703 428,221 802,591 803,400 299,759 56,619 498 213.757 29,088 11,181 1915 1,312,329 389,205 967,950 831,200 293,453 581 138.758 33,385 18,028 1916 1,442,229 402,970 652,885 758,396 255,772 599 58,759 49,183 33,027 1917 1,739,750 422,594 639,682 a 667,041 238,931 572, 53,717 65,513 31,214 1918 2,245,720 523,632 664,017 243,566 538, 53,074 76,532 32,691 1919 2,097,713 583,211 694,847 203,441 51,417 259 45,111 75,350 39,590 Latest available date in 1920 12,097,843 2 738,243 3 682,711 4 203,654 5 51,435 6 260,032 7 45,180 8 75,689 939,481

Domestic India Conversion gold re- Govern- Canadian fund of the serves of ment National Bank of B ank of Bank of Bank of \ Govern- Argentine the Bank rupee Bank of Bank . Den- Nether- Spain. Switzer- | ment Govern- of Japan reserve Java. of Ru- Total. mark. lands. land. reserves. ment. and of the held in in ani Govern- India. ment.

Dec. 31- 1910 . .. 18,319 49,948 79,280 30,034 74,789 179,447 67,360 13 30,103 (21) 3,363,894 1911 18,556 56,426 80,693 31,009 100,631 182,394 66,228 13 75,688 13 10,582 (2!) 3,511,640 1912 19,465 65,032 84,384 33,416 104,077 215,031 67,814 13 95,293 13 16,046 (21) 3,630,571 1913 19,666 60,898 92,490 32,801 115,375 224,989 64,963 13 72,780 13 10,027 29,242 3,968,206 1914 24,506 83,663 110,444 45,922 94,626 213,906 64,062 30,202 13 12,418 29,714 4,680,290 1915 29,833 172,530 166,414 48,275 120,335 ^228,939 68,187 41,361 1318,804 36,264 5,497,204 1916 42,847 236,217 241,424 66,585 119,598 " 251,158 113,411 38,636 13 28,984 22 5,391,976 1917 46,611 280,689 379,597 69,025 120,143 " 252,390 229,981 86,712 13 37,051 5,933,409 1918 52,159 277,155 430,072 80,041 121,261 "269,628 225,821 63,842 13 51,600 2 5,949,674 1919 60,807 256,204 472,041 99,779 119,212 "299,119 349,947 96,205 13 69,817 200 5,873,530 Latest availa- ble date in 15 1920 10 60,994 255,809 2 473,660 104,376 16 95,205 ""415,828 iM50,644 19 115,632 20 88,819 22 329 6,255,565

a Oct. 16-29. 12 Nov. 6. 1 Nov 29. 13 Mar. 31 of the following year. 2 Oct. 27. 14 Exclusive of the gold held in the Argentine legations abroad, and 3 Oct. 28. the 10,000,000 gold pesos in the conversion fund of the Banco de la Nacion. 4 June 30. • 15 Oct. 30. s Oct. 28. 16 Sept. 30. e Oct. 23. 17 July 30 (see Revista de Economia Argentina, p. 71) 7 Aug. 23. is Oct. 15. s Oct. 23. 19 Oct. 15. 9 Nov. 8. 20 Sept. 25. w Oct. 30. 21 Figures for vault holdings not available. " Oct. 18. 22 July 17.

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New Currency Law for British India. Mercantile Bank of the Americas (Inc.), New York City: , France. India's coinage and paper currency laws Barcelona, Spain. Madrid, Spain. have recently been amended. Following is the Hamburg, Germany. resolution promulgating the new law: AQiliated institutions— RESOLUTION. Mercantile Overseas Corporation— Guyaquil, Ecuador. The rate at which the sovereign and the half-sovereign Banco Mercantil Americano de Colombia— are legal tender in India has been altered from Rs. 15 to Bogota, Barranquilla, Cartagena, Medellin, Cali, Rs. 10 per sovereign by the Indian Coinage (amendment) Girardot, Manizales, Honda, Armenia, Bucara- Act No. XXXVI of 1920. Also the Indian Paper Cur- manga, and Cucuta, Colombia. rency (amendment) Act No. XLV of 1920 authorizes the Banco Mercantil Americano del Peru— issue of currency notes against sovereigns and half-sover- Lima, Arequipa, Chiclayo, Callao, Trujillo, and eigns at the new rate of Rs. 10 per sovereign and against Piura, Peru. gold bullion at the corresponding rate of rupee 1 for Banco Mercantil Americano de Caracas— 11.30016 grains troy of fine gold. The Government of Caracas, La Guayra, Maracaibo, Puerto Cabello, India have accordingly decided that, with effect from the and Valencia, Venezuela. 1st October. 1920, sovereigns and half-sovereigns shall be American Mercantile Bank of Brazil— valued at the rate of Rs. 10 per sovereign and gold bullion Para and Pernambuco, Brazil. at rupee 1 for 11.30016 grains troy of fine gold in all Gov- National Bank of Nicaragua— ernment accounts, inclusive of the accounts of the paper Managua, Bluefields, Leon, and Granada, Nica- currency and gold standard reserves. ragua. (2) Gold mohurs will however continue to be valued at Banco Mercantil Americano de Cuba— Rs. 15 each in all Government accounts except those of and Ciego de Avila, Cuba. the paper currency reserve. Mohurs can now be held in Banco Mercantil de Costa Rica- that reserve at their bullion value only, and when it be- San Jose, Costa Rica. comes necessary to place mohurs in the reserve hereafter Banco Atlantida— the difference between their equivalent at the 15-rupee La Ceiba, Tegucigalpa, San Pedro Sula, Puerto rate and the value at which they can be held in the reserve Cortez, and Tela, Honduras. will be treated as an item of expenditure of Government. (A branch office is also maintained by the Mer- (3) All gold and securities held in the paper currency cantile Bank of the Americas (Inc.) in New reserve on the 1st October, 1920, will be revalued in ac- Orleans, La.) cordance with the provisions of the Paper Currency (amendment) Act No. XLV of 1920, and the deficiency in Asia Banking Corporation, New York City: the reserve resulting from the revaluation will be made Canton, China. up by 12 months' Treasury bills of the Government of Changsha, China. India issued by the controller of the currency to the Hankow, China. reserve. Hongkong, China. Manila, Philippine Islands. Peking, China. Foreign Branches. Shanghai, China. Tientsin, China. There is given below a list of the foreign International Banking Corporation, New York City: banking corporatiors organized under State Canton, China. laws doing business under agreement with the Hankow, China. Harbin, China. Federal Reserve Board, and their foreign Hongkong, China. branches; foreign banking corporations or- Peking, China. ganized under section 25 (a) of the Federal Shanghai, China. Reserve Act; and foreign branches of national Tientsin, China. Tsingtao, China. banks, as of November 18, 1920: , England. BANKS DOING BUSINESS UNDER AGREEMENT WITH THE Lyons, France. FEDERAL RESERVE BOARD. Bombay, India. Calcutta, India. American Foreign Banking Corporation, New York City: Rangoon, India. Brussels, Belgium. Yokohama, Japan. Buenos Aires, Argentina. Kobe, Japan. Cali, Colombia. Batavia, Java. Cristobal, Canal Zone. Soerabaya, Java. Harbin, Manchuria. Panama, Republic of Panama. Havana, Cuba. Colon, Republic of Panama. La Vega, Dominican Republic. Cebu, Philippine Islands. Manila, Philippine Islands. Manila, Philippine Islands. Panama City, Republic of Panama. Singapore, Straits Settlements. Puerto Plata, Dominican Republic. Santo Domingo, Dominican Republic. Port-au-Prince, Haiti. Sanchez, Dominican Republic. , Brazil. San Pedro de Macoris, Dominican Republic. Sanchez, Dominican Republic. Santiago, Dominican Republic. San Francisco de Macoris, Dominican Republic. Barahona, Dominican Republic. San Pedro de Macoris, Dominican Republic. Puerta Plata, Dominican Republic. San Pedro Sula, Republic of Honduras. (A branch office is also maintained by the Inter- Santiago de Los Caballeros, Dominican Republic. national Banking Corporation in San Francisco, Santo Domingo, Dominican Republic. Calif.)

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Park-Union Foreign Banking Corporation, New York City: National City Bank, New York City—Continued. Paris, France. Cape Town, South Africa. Shanghai, China. Port of Spain, Trinidad. Tokyo, Japan. Calle Rondeau, Montevideo, Uruguay. Yokohama, Japan. Montevideo, Uruguay. (Branch offices are also maintained in San Fran- Caracas, Venezuela. cisco, Calif., and Seattle, Wash., by the Park- Ciudad Bolivar, Venezuela. Union Foreign Banking Corporation.) Maracaibo, Venezuela. The First National Corporation, Boston, Mass., has Temporarily closed— opened no foreign branches. A branch office of this cor- Moscow, Russia. poration is maintained at 14 Wall Street, New York City. Petrograd, Russia. The Shawmut Corporation of Boston, Mass., has opened First National Bank, Boston, Mass. no foreign branches. A branch office of this corporation Buenos Aires, Argentina. is maintained at 65 Broadway, New York. The French American Banking Corporation of New York City and the Foreign Credit Corporation of New York City have opened no foreign or domestic branches. State Banks and Trust Companies Admitted. The following list shows the State banks and trust com- FOREIGN BANKING CORPORATIONS ORGANIZED UNDER panies which have been admitted to membership in the SECTION 25 (a) OF FEDERAL RESERVE ACT. Federal Reserve System during the month of November, 1920. First Federal Foreign Banking Corporation, New York One thousand four hundred and sixty-two State insti- City. tutions are now members of the system, having a total capital of $506,873,000, total surplus of $498,932,930, and FOREIGN BRANCHES OF NATIONAL BANKS. total resources of $10,127,714,260.

National City Bank, New York City: Total Buenos Aires, Argentina. Name of bank. Capital. Surplus. Plaza Once, Buenos Aires, Argentina. Rosario, Argentina. District No. 4. Brussels, Belgium. Antwerp, Belgium. Adena Commercial & Savings Bank, Bahia, Brazil. Adena, Ohio $60,000 $108,553 Pernambuco, Brazil. District No. 5. Porto Alegre, Brazil. Farmers Bank & Trust Co., Forest City, Rio de Janeiro, Brazil. N.C 100,000 $75,000 1,347,778 Santos, Brazil. Sao Paulo, Brazil. District No. 6. Barranquilla, Colombia. Commerce Bank & Trust Co., Com- Bogota, Colombia. merce, Ga 100,000 326,635 Medellin, Colombia. Bank of Donalsonville, Donalsonville. Ga 100.000 50,000 724,939 Santiago, Chile. Lagrange Banking & Trust Co., La- Valparaiso, Chile. grange, Ga 250,000 650,000 4,071,433 Artemisa, Cuba. Bayamo, Cuba. District No. 7. Caibarien, Cuba. Citizens State Bank, Early. Iowa 30,000 33,000 421,149 Camaguey, Cuba. Magnolia Savings Bank, Magnolia, Iowa.. 25,000 10,000 320,837 Security Trust & Savings Bank, Shenan- Cardenas, Cuba. doah, Iowa 60,000 6,000 395,254 Ciego de Avila, Cuba. The Hamilton County State Bank, Web- Cienfuegos, Cuba. ster City, Iowa 100,000 30,000 1,663,582 Colon, Cuba. Stratford State Bank, Stratford, Wis 50,000 10,000 459,396 Cruces, Cuba. District No. 8. Cuatro Caminos, Habana, Cuba. Saline Trust & Savings Bank, Harrisburg, Galiano, Habana, Cuba. 100,000 50,000 867,840 Guantanamo, Cuba. Habana, Cuba. District No. 10. Manzanillo, Cuba. The Fidelity State Bank, Aurora, Nebr... 50,000 15,000 907,888 Matanzas, Cuba. Meadow Grove State Bank, Meadow Nuevitas, Cuba. Grove, Nebr 25,000 5,000 331,992 Pinar del Rio, Cuba. District No. 11, Placetas del Norte, Cuba. Bay City Bank & Trust Co., Bay City,Tex 65,000 10,000 807,460 Remedios, Cuba. First State Bank, Bishop, Tex 25,000 10,000 235,131 Sagua la Grande, Cuba. Sancti Spiritus, Cuba. District No. 12. The Commercial Bank of Turlock, Tur- Santa Clara, Cuba. lock Calif. 75,000 35,000 1,111,725 Santiago, Cuba. J. N. Ireland & Co., Bankers,MaladCity, Union de Reyes, Cuba. Idaho 40,000 12,500 612,913 Madras State Bank, Madras. Oreg 25,000 18,000 309,972 Yaguajay, Cuba. Jackson County Bank, Medford, Oreg 20,000 1,218,732 London, England. 100,000 Genoa, Italy. Lima, Peru. Withdrawal.—First Trust & Savings Bank, Winamac, San Juan, Porto Rico. Ind. Ponce, Porto Rico. Conversion.—The Superior Savings & Trust Co., Cleve- Barcelona, Spain. land, Ohio, to the Superior National Bank & Trust Co. of Madrid, Spain. Cleveland, Ohio.

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Voluntary liquidation.—Leon Savings Bank, Leon, Iowa. ber, the latest month for which complete statistics are Change of place of business.—The Farmers and Stock- available, disclose 923 insolvencies for $38,914,659 of lia- growers Bank of Sweet, Gem County, Idaho, has removed bilities, as against only 463 failures for less than $7,000,000 its place of business to Montour, Gem County, Idaho. in the corresponding month of last year. It thus appears that the October defaults are practically double in num- ber those of that month of 1919, while the expansion in the indebtedness is relatively much greater, owing to an unusual number of insolvencies of exceptional magnitude. Fiduciary Powers Granted to National Banks. The October failures, moreover, are larger in number than those of any month since March, 1918, and the liabilities are The applications of the following banks for permission to the heaviest of all months back to April of 1915. Separated act under section 11 (k) of the Federal Reserve Act have a ?cording to Federal Reserve districts, the October state- been approved by the Board during the month of ment shows more failures than in that month of 1919 in November, 1920: e ^ery instance, except in the sixth district, where there DISTRICT NO. 2. is no change, and in the ninth district, where a reduction Trustee, exe :'or, administrator, registrar of stocks and bonds, guar- oi one default is seen. Aside from the first district, where dian of esta ;, assignee, receiver, committee of estates of lunatics: t\ ere is a moderate decrease, the October liabilities show The Secon National Bank of Hoboken, Hoboken, N. J. The First i\ fional Bank of Ridgewood, Ridgewood, N. J. ii .creases in every case, and some of the differences are striking. DISTRICT NO. 3. Failures during October. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: Number. Liabilities. The County National Bank of Lock Haven, Lock Haven, Pa. The First National Bank, Merchantville, N. J. Districts. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver. 1920 1919 1920 1919 The Broad Street National Bank, Philadelphia, Pa.

DISTRICT NO. 4. First 59 50 $938,595 $1,016,079 Second 275 86 15,462,866 1,650,441 Trustee, executor, administrator, registrar of stocks and bonds, guardian Third 27 24 2,902,609 341,294 of estates, assignee, receiver: Fourth.. 69 49 1,933,886 763,728 The Central National Bank of Cleveland, Cleveland, Ohio. Fifth 58 21 1,644,702 119,567 The Superior National Bank and Trust Company, Cleveland, Ohio. Sixth . . ... 38 38 613,307 256,923 Trustee, executor, administrator, registrar of stocks and bonds, guardian Seventh 122 59 6,259,566 715,161 of estates, assignee, receiver and committee of estates of lunatics. Eighth 47 23 1,280,507 249,471 The First National Bank, Sharon, Pa. Ninth 16 17 83,769 64,709 Tenth 41 27 775,366 361,861 Fleventh 42 22 2,947,957 263,516 DISTRICT NO. 7. Twelfth 129 47 4,071,529 1,069,216 Guardian of estates, assignee, receiver, committee of estates of lunatics: Total 923 463 38,914,659 6,871,966 The Des Moines National Bank, Des Moines, Iowa. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver and committee of estates of lunatics. The First National Bank, Aurelia, Iowa. New National Bank Charters. DISTRICT NO. 8. The Comptroller of the Currency reports the following Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics: increases and reductions in the number and capital of The St. Claire National Bank of Belleville, Belleville, 111. national banks during the period from October 30, to The First National Bank of Marion, Marion, 111. November 26, 1920, inclusive:

DISTRICT NO. 10. Trustee, executor, administrator, registrar of stocks and bonds, guardian Banks. Amount. of estates, assignee, receiver, committee of estates of lunatics: The First National Bank, Emerson, Nebr. The First National Bank of Randolph, Randolph, Nebr. New charters issued to. Trustee, executor, registrar of stocks and bonds and guardian of estates. With capital of.. $2,110,000 The First National Bank, Marysville, Mo. Increase of capital approved for With new capital of 890,000 Aggregate number of new charters and banks in- creasing capital 34 With aggregate of new capital authorized ,000,000 Number of banks liquidating (other than those Acceptances to 100 Per Cent. consolidating with other national banks under the act of June 3, 1864) Capital of same banks 2,,225,000 Since the issuance of the November BULLETIN the fol- Number of banks reducing capital lowing bank has been authorized by the Federal Re- Reduction of capital 0 Total number of banks going into liquidation or serve Board to accept drafts and bills of exchange up to reducing capital (other than those consolidating 100 per cent of its capital and surplus: with other national banks under the act of June Security National Bank of Oklahoma City, Okla. 3,1864) Aggregate capital reduction 2,,225,000 Consolidation of national banks under the act of Nov. 7, 1918 Capital 730,000 The foregoing statement shows the aggregate of Commercial Failures Reported. increased capital for the period of the banks embraced in statement was 3,000,000 Against this there was a reduction of capital owing The tendency toward increase in the country's business to liquidation (other than for consolidation with mortality has become more sharply denned, and the 746 other national banks under the act of June 3, commercial failures reported to R. G. Dun & Co. during 1864), and reductions of capital of 2,225,000 three weeks of November materially exceed the 408 de- Net increases.. 775,000 faults of the same period of 1919. The returns for Octo-

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RULINGS OF THE FEDERAL RESERVE BOARD. Acceptances against domestic shipping documents. granted upon the borrower's promissory note The Federal Reserve Board has been asked to rather than by means of bankers' acceptances. rule upon the eligibility of bankers' acceptances In the ruling in the January, 1920, BULLETIN created under the following circumstances: it was said with reference to certain renewal Cottonseed oil is sold and shipped by a mill acceptances "the spirit of the law does not to a refiner. The mill draws a sight draft upon contemplate that acceptances based upon the the refiner and attaches the bill of lading domestic shipment of goods shall be used as a covering the cottonseed oil shipped. Upon cloak to finance the carrying of those goods receipt of the sight draft with bill of lading throughout the process of manufacture into attached, the refiner pays the sight draft and finished products." The principle there stated retains the bill of lading. The refiner desires is equally applicable to original acceptances to draw 90-day drafts for acceptance by his based upon the domestic shipment of goods. bank, the bill of lading to be attached to the Regulation A of the Board's regulations, draft at the time of acceptance but to be series of 1920, provides in section B, subdivision returned to the refiner immediately thereafter. (c) (2) that— The facts which have been presented to the Although a Federal Reserve Bank may rediscount an Board do not indicate how long a period of acceptance having a maturity at the time of rediscount time it takes for the completion of the ship- of not more than three months, exclusive of days of grace, ment from the mill to the refiner, but it is to be it may decline to rediscount any acceptance the maturity of which is in excess of the actual or customary period of inferred that the shipment will be concluded credit required to finance the underlying transaction or shortly after the drawing of the drafts by the which is in excess of that period reasonably necessary to refiner. In fact it is urged that the drafts finance such transaction. must be drawn for 90 days, because it will Where bankers' acceptances are drawn require at least that time before the refiner can against bills of lading, the underlying trans- refine the cottonseed oil and reship the finished action is, of course, the domestic shipment of product and receive payment therefor. the goods covered by the bill of lading. The The Federal Reserve Board is of the opinion period during which the acceptances are to that drafts drawn under these or similar cir- run should, therefore, have some relation to the cumstances are not eligible for rediscount by period of time actually required for the ship- Federal Reserve Banks. ment. The acceptance of drafts secured by The Board has heretofore ruled that drafts bills of lading for the primary purpose of pro- drawn by the purchaser of goods and secured viding the borrower with working capital at the time of acceptance by bills of lading during the period required to manufacture and covering the goods bought are not eligible resell the goods covered by the bills of lading unless.the proceeds are to be used to pay for is an abuse of the domestic acceptance privilege, the goods. (FEDERAL RESERVE BULLETIN, which should be carefully guarded against; May, 1917, p. 380; FEDERAL RESERVE BUL- and Federal Reserve Banks should decline to LETIN, Jan., 1920, p.. 66.) Under the facts rediscount or purchase acceptances made for which have been presented to the Board in the such purpose. present case, it is not clear whether the refiner is to use the proceeds of the bankers' accept- ance to pay the mill for the cottonseed oil Agricultural implement paper. covered by the bill of lading. If not, the The Federal Reserve Board receives from acceptance would be ineligible upon this time to time inquiries with reference to the ground. eligibility for rediscount by Federal Reserve Furthermore, even though it should appear- Banks of paper arising out of the purchase of that the refiner is to use the proceeds of the agricultural implements and farm machinery draft to pay for the cottonseed oil purchased, of various kinds. In view of these inquiries the circumstances would not, in the Board's the Board has made the following ruling: _ Definition of eligible commercial and agricul- opinion, justify the issuance of a 90-day : acceptance credit, since it is apparent that the tural paper.- -Tae regulations of the Federal credit is desired for the purpose of adding to Reserve Board define eligible commercial and the working capital of the borrower rather than agricultural paper as notes, drafts, or bills of to finance the shipment of goods during the exchange which have been issued or drawn, or period that the shipment is continuing. A tli.i proceeds of which have been used or are to credit for such a purpose should, of course, be be used in the first instance, in producing, pur-

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chasing, carrying, or marketing goods (includ- funds to purchase articles for resale, may be ing goods, wares, merchandise, or agricultural eligible for rediscount as commercial paper products, including live stock) in one or more irrespective of the character of such articles. of the steps of the process of production, manu- A note of a farmer, however, discounted by facture, or distribution. If a note, draft, or him at his local bank to provide funds with bill of exchange has been issued or drawn, or which to purchase articles for agricultural uses the proceeds have been or are to be used, for is eligible or ineligible for rediscount according an agricultural purpose, that note, draft, or to the character of such articles. The farmer's bill of exchange may be eligible for rediscount note is ineligible for rediscount if the articles if it has a maturity at the time of rediscount of are in the nature of a permanent or fixed in- not more than six months, exclusive of days of vestment; but, on the other hand, if they are grace. On the other hand, if a note, draft, or articles which are for agricultural uses and bill of exchange has been issued or drawn, or which have to be replaced from time to time, the proceeds have been or are to be used for a the farmer's note may be eligible for rediscount commercial purpose, it will not be eligible for as agricultural paper. rediscount if it has a maturity at the time of Articles in the nature of pemaanent or fixed rediscount in excess of 90 da}^s, exclusive of investments.—Whether or not given articles days of grace. The Board's regulations further are in the nature of permanent or fixed invest- provide that no note, draft, or bill of exchange ments, as that term is used in the Board's regu- is eligible for rediscount if the proceeds have lations, is a question which depends upon the been or are to be used for permanent or fixed circumstances in each particular case. The investments of any kind, such as land, build- Board has ruled that farm tools, agricultural ings, fixed machinery, or for any other capital implements and machinery, and other farm- purpose. operating equipment do not constitute per- Tvx) general classes of eligible agricultural and manent or fixed investments when they are of commercial paper.—It will be observed that such a character that they have to be replaced there are two general classes of eligible agricul- within a comparatively short time, so that it tural and commercial paper—(1) paper which may be assumed that a farmer will have to is eligible because issued or drawn for an agri- spend a certain amount of money annually and cultural or commercial purpose, and (2) paper regularly for the purchase and replacement of which is eligible because the proceeds have equipment of this kind (FEDERAL RESERVE been or are to be used for an agricultural or BULLETIN, Feb., 1916, p. 67). So, also, the commercial purpose. Board has specifically ruled that a tractor, like Notes given in payment for articles pur- horses and mules, bought for farm work and chased.—Since the purchase and sale of goods purchased with several years' use in view, does of any character is a commercial transaction not constitute a permanent, or fixed invest- from the standpoint of the seller, a note of a ment, and that a note the proceeds of which buyer given to the seller in payment for articles are used to pay for such a tractor may be urchased is a note which has been " issued or eligible agricultural paper (FEDERAL "RE- Srawn" for a commercial purpose. Such a SERVE BULLETIN, Apr., 1918, p. 309). On the note may, therefore, be eligible for rediscount other hand, the Board has ruled that a silo is irrespective of whether or not the articles pur- a permanent or fixed investment, and that a chased will constitute a permament or fixed note the proceeds of which have been used to investment in the hands of the ultimate pro- build a silo is not eligible agricultural paper ducer. This is true whether the buyer is a (FEDERAL RESERVE BULLETIN, Oct., 1918, p. dealer, purchasing articles for resale, or is a 971). The Board has also ruled, upon the farmer, purchasing articles for his own use. basis of the facts in the particular case, that an Notes the proceeds of which are used to pur- electric system furnishing light and power for chase articles.—If a note is not " issued or an individual farm is in the nature of a perma- drawn" for a commercial or agricultural pur- nent or fixed investment within the meaning pose, its eligibility or ineligibility for redis- of the Board's regulations. count must be determined by the purpose for Distinction between agricultural paper and which the proceeds have been or are to be used. commercial paper.—The purchase and sale of The use of proceeds to purchase goods for any articles or commodities including agricul- resale is a commercial purpose, even though tural products is a commercial rather than the articles are of such a character that they an agricultural transaction. Consequently the must be considered permanent investments in note of a dealer, whether it is given in pay- in the hands of those* who ultimately purchased ment for articles or commodities purchased them. Consequently, the note of a dealer, dis- for resale or is discounted by the dealer at counted by him at his local bank to provide his bank to provide funds with which to pur-

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chase such articles or commodities, can be paper, but may be eligible as commercial paper eligible for rediscount only as commercial if it has a maturity at the time of rediscount paper, even though the articles or commodi- of not more than 90 days. ties will be used by the ultimate purchasers Sams principles apply to drafts as to notes.— for agricultural purposes. Such a note can In the foregoing statements and discussions of be eligible for rediscount, therefore, only hypothetical cases where payment for goods when it has a maturity at the time of redis- purchased is made by the buyer giving to the count of not more than 90 days. The note seller a negotiable instrument representing the of a farmer, however, given in payment for buyer's obligations, it has been assumed for articles or commodities purchased, may be the sake of brevity that the negotiable instru- considered agricultural paper which is eligible ment would be a note of the buyer. As a for rediscount when it has a maturity at the matter of fact, in such cases the buyer may time of rediscount of not exceeding six months, either make his own note or accept a draft provided that the articles or commodities pur- drawn on him by the seller. In either case, chased are to be used by the farmer for agri- however, the same principles will apply in cultural purposes and are not in the nature determining whether the instrument repre- of permanent or fixed investments. So also, senting the buyer's obligation is commercial of course, the note of a farmer, discounted by paper, which can not be rediscounted if it has him at his local bank for the purpose of provid- a maturity in excess of 90 days, or agricultural ing funds to purchase such articles or commodi- paper, which may be rediscounted with a ties, may be eligible for rediscount as agricul- maturity not in excess of six months. tural paper when it has a maturity at the time No obligation to rediscount paper even though of rediscount of not more than six months. eligible.—It should be understood, of course, Since the purchase and sale of agricultural prod- that even though a bill or note may techni- ucts is a commercial rather than an agricultural cally be eligible for rediscount, a Federal transaction, a note given to a farmer in payment Reserve Bank is under no obligation to redis- for agricultural products grown by him can count it, but may accept it or refuse it in the not be eligible for rediscount as agricultural exercise of its discretionary power. LAW DEPARTMENT. Right of Federal Reserve Banks to collect checks drawn The suit was originally brought in the Superior Court of on nonmember banks not remitting at par. Fulton County, Ga., and was removed to the District Court of the United States for the Northern District of Georgia, The following is the opinion, filed November by the appellee, the Federal Reserve Bank of Atlanta. 19, 1920, of the United States Circuit Court of The appellants were State banks of Georgia, not members Appeals, Fifth Circuit, in the so-called "Par of the Federal Reserve System. The relief prayed for in Clearance" case instituted against the Federal the petition filed in the State court, was an injunction against the appellees, restraining them from collecting Reserve Bank of Atlanta, last January. The checks drawn on appellants " except in the usual and opinion affirms the decision of the District ordinary channel of collecting checks through correspond- Court of the Northern District of Georgia (see ent banks or clearing houses/' the purpose being to pre- opinion published on page 496 of the May, 1920, vent collection through agents presenting the checks over the banks' counter. The appellants moved to remand the BULLETIN) and, in a full discussion of the cause to the State court, which was denied, and the bill points at issue, holds that the Federal Reserve was dismissed on the appellees' motion to dismiss for want Banks have the right to collect checks, drawn of equity. The appeal presents the questions of the cor- on nonmember banks which refuse to remit at rectness"of the rulings of the district court (1) in refusing to remand the case, and (2) in dismissing the bill (on the par, by having such checks presented at the merits. counters of the drawee banks, and that the (1) The jurisdictional amount is conceded to be present. case is one of which the United States district There was no diversity of citizenship claimed. Removal court has jurisdiction. was granted because the cause was considered to be one arising under the Constitution and laws of the United States. This because (1) the defendant, the Federal IN THE UNITED STATES CIRCUIT COURT OF APPEALS, FIFTH Reserve Bank, was incorporated under an act of Congress, CIRCUIT. and was neither a railroad corporation nor a national bank- ing association; and (2) because the appellants' petition or American Bank & Trust Company, et al., appellants, v. bill, as amended, introduced a Federal question into the Federal Reserve Bank of Atlanta, Ga., et al., appel- record, in that it charged the acts of the defendants, lees. sought to be enjoined, to be ultra vires of the powers of the Before Walker and Bryan, circuit judges, and Grubb, appellee, the Reserve Bank, granted by the Federal district judge. Reserve Act and its amendments. If the district court GRUBB, District Judge: had original jurisdiction of the cause of action for either This is an appeal from a decree in equity of the District or both of the reasons mentioned, the cause was properly Court of the United States for the Northern District of removed. The appellants contend that the Federal Re- Georgia, dismissing the bill or petition for want of equity. serve^Bank is a national banking association, the presence

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of which as a party defendant would not introduce a of the national banking laws. Such a conclusion would question arising under the laws of the United States, and be a dangerous one, and lead to unforseeable conse- that there is no other such question presented by the quences. We think it safer to conclude that Congress appellants' petition or bill. intended national banking associations to include only We think the United States district court had original those that were then being created or those of a kindred jurisdiction of the cause of action for both of the reasons nature that might thereafter be created; and that the assigned. The case of Osborn v. Bank of the United States differences between ordinary banks of deposit and dis- (9th Wheat., 738), supported by many subsequent deci- count with the public as customers and banks whose sions of the Supreme Court, settles the question of the only permissible stockholders and customers are the j urisdiction of the Federal court in cases in which one of Government and other banks, and which are more gov- the parties is a corporation, which owes its creation to an ernmental agencies than private institutions; are not act of Congress, unless another act of Congress has with- within the purview of national banking associations, as drawn such jurisdiction. Nor is it important whether the contemplated by Congress when it enacted the limita- Federal incorporation occupies the position of plaintiff or tion upon the jarisdiction of national banking associa- of defendant in the action. This is true unless & long line tions. In view of the paucity in number of the reserve of Supreme Court decisions, in which jurisdiction was banks, and their more intimate relation to the Govern- sustained upon this ground, without reference to the ment, and their more remote contact with the general position of the corporation in the line-up of the parties, be public, Congress may well have found reason not to with- disregarded. From this, follows the right of a Federal draw the jurisdiction of the Federal courts from them by incorporation, made a defendant in a cause in a State reason of their Federal incorporation; though it had done court, to remove the cause to the Federal court, unless so in the case of national banks. There is no express prohibited by an act of Congress. (Texas & Pacific Rail- withholding of such jurisdiction. To imply it would way Co. v. Cody, 166 U. S., 606-609; Washington & Idaho necessarily lead to other implications so far reaching R. R. Co. v. Coeur D'Alene Ry. Co., 160 U. S., 177-193.) and difficult to anticipate that we do not think it should Congress has withdrawn jurisdiction only in cases of rail- be implied. road companies and national banking associations. The If the fact of Federal incorporation of the Reserve Banks contention of appellants is that the Federal Reserve Bank confers jurisdiction on the Federal court, the fact that the of Atlanta is a national banking association within the officers of the appellee bank are made individual code- meaning of the act of July 12, 1882 (c. 290); the judiciary fendants with it and that they are citizens of Georgia does act of March 3, 1887, as corrected by the act of August 13, not prevent removal. (Matter of Dunn, 212 U. S., 374.) 1888 (c. 886, sec. 4);.and by section 24 of the Judicial (2) The amendment to the bill or petition of appellants Code of 1911. The prohibiting clause of the latter is: charged that the acts of the appellees sought to be enjoined, "And all national banking associations established under if committed, would be committed in excess of the powers the laws of the United States shall for the purpose of all of the Federal Reserve Bank of Atlanta, and in violation other actions against them, real, personal, or mixed, and of the provision of the Federal Reserve Act. Paragraph 9 all suits in equity, be deemed citizens of the States in of the amendment charges that "the coercive measures, which they are respectively located." If this language now threatened, are not only not authorized or required by applies to the Federal Reserve Banks, it withdraws juris- the terms of the Federal Reserve Act, which includes the diction from the Federal courts, in cases in which they charter of defendant reserve bank, but express provision is are parties, and in which no other ground of jurisdiction found therein for the performance of all clearing-house appears in the record. We do not think it can be held to functions, therein imposed in the regular way and through apply. At the time of the original limitation of jurisdic- orderly banking channels, applicable to nonmember tion in the act of July 12, 1882, and at the time of its banks as well as member banks. Wherefore plaintiffs renewals in the judiciary act of 1887, and in the Judicial charge that the threatened coercive measures are ultra Code of 1911, Federal Reserve Banks were unknown. vires the charter of defendant Reserve Bank and the exe- The only national banking associations, then existent, cution thereof by the individual defendants would be were the national banks organized under the national illegal and should be enjoined." The purpose of the peti- banking laws. The question is whether Congress in- tion or bill was not to enforce the collection of compensa- tended to include within this designation banks to be tion for services availed of by the defendant Reserve Bank subsequently created of the nature of the Federal Re- at their reasonable value under the common law right. It serve Banks. The answer will depend upon the result was to compel the defendant bank to avail itself of such of a comparison instituted between the national banks services or, as an alternative, to abstain from handling the and the reserve banks, and is to be determined, not so plaintiffs' check for collection. The bill prayed that the much by points of identity (for all banks have many defendant bank be enjoined from presenting petitioners' such) but by points of difference. The important differ- or plaintiffs' checks for collection in any but the usual way ences between national banks and reserve banks, so far through correspondence and remittance. Section 13 of as the solution of this question is concerned are (1) the the Federal Reserve Act provided that "no such charges disparity in the number of each class and (2) that the (for remission) shall be made against the Federal Reserve reserve banks are banks of deposit and discount for other Banks." Appellants' contention is that this prohibition banks only and not for the general public. There are prevents the Federal Reserve Banks from expending many other important differences but we think the two money in any way for the collection and remission of the mentioned are determinative. The one class, small in proceeds of checks and drafts drawn on nonmember and number, acts as governmental fiscal agencies with no nondepositing banks and that any attempt to collect such general clientele; the other class serves the public gen- checks and drafts by presenting them over the counter to erally and locally, and are necessarily numerous. That drawee banks which would not remit for them at par was all the provisions of the national banking act could be unauthorized and ultra vires of the powers of the Reserve made applicable appropriately or safely to the class of Banks under the Federal Reserve Act; and appellants ask reserve banks, is clearly impossible. Yet the same that the defendant bank be enjoined from handling such reasoning that would apply the limitation of jurisdiction checks and drafts in the manner stated for that reason. imposed upon national banks to reserve banks would Appellee, the Reserve Bank, assertsits right under the same make it necessary to apply all other limitations against provision of the Federal Reserve Act to collect such checks and grants in favor of national banks to reserve banks. and drafts by any method, provided it makes no payments If the Reserve Banks are national banking associations to remitting banks for services in remitting. Plaintiffs, within the meaning of the act of July 12, 1882, and its cause of action was the alleged wrong asserted by them to successors, for one purpose, they are so for all purposes be caused by such collections. One ground upon which

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the wrong was urged is that the Reserve Bank is forbidden counters and it was the absolute duty of the complaining by the Reserve Act to make collection of checks and drafts banks to pay the full amount of such checks without de- in this manner. This presents for decision the proper con- duction, when so presented. This is disputed by appel- struction of the quoted provisions of the Federal Reserve lants only because of the statutory prohibition against the Act, and it was presented in the plaintiffs' own statement Federal Reserve Banks paying the cost of remission of the of their cause of action in the amendment to the bill and proceeds of checks collected by it. It is contended that not as a suggested or anticipated defense which the defend- this provision not only prohibited the Reserve Banks from ants might be expected to set up as an answer to the plain- paying exchange to remitting banks on which the checks tiffs' cause of action. The solution of this question depends were drawn, but also from paying expense of any kind or upon the construction to be given sections 13 and 16 of the to any person for collecting checks; and that as a conse- Federal Reserve Act and not merely to a chartered power quence the Federal Reserve Banks were without power to of the defendant bank. The plaintiffs having injected this handle any checks for collection, where such collection was Federal question into their statement of their cause of attended with expense of any kind. If so, it would follow action the case was thereby made removable as one arising that the endeavor to collect checks over the counter through under the laws of the United States. paid agents was within the prohibition of the Federal Re- We think the district court of the United States prop- serve Act as amended and ultra vires. Whether appel- erly entertained jurisdiction for both reasons. lants' construction of the prohibiting clause is correct de- Coming to the merits, the appellants' cause of action is pends upon the purpose it was intended to subserve. the prevention by injunction of the Federal Reserve Bank Appellants' contention is that its purpose was to con- of Atlanta from collecting checks drawn on appellants' serve the assets of the Reserve Bank. Appellees' conten- banks, in any other way than by correspondence and the tion is that it was to aid in accomplishing a uniform par remitting of the proceeds of the check by the bank on clearance system. In view of the purpose of Congress to which it was drawn. The usage of the complaining banks effect the latter object, we think the appellees' construc- had been to make a deduction from the amount of the tion is the correct one, and that the prohibition is limited check in remitting the proceeds to cover the so-called ''ex- to a charge against and payment of the charge to a remitting change " or cost of remitting. This charge could only be bank, and does not prevent the Federal Reserve Banks •applied in cases in which the check was forwarded through from expending money for collection of checks in any other the mails to the drawee bank. If the check was presented way in an endeavor to accomplish a uniform system of par over the counter of the drawee bank either by the payee or clearance. It follows that the acts of the Federal Reserve his agent, the full amount of the check was required to be Bank complained of are within its legal powers. Conced- paid, and the drawee bank was defeated in its endeavor to ing that they were ultra vires solely because entailing an collect exchange on it. The purpose of the bill was to pre- unauthorized disposition of the banks' assets, the appel- vent the Federal Reserve Bank from handling checks on lants and intervenors, who were neither stockholders nor appellants and on other nonmember State banks except creditors of the Reserve Bank, would have no standing through the regular channel of correspondence or clearing. to complain of such a disposition, because of a collateral Section 13 of the Federal Reserve Act as amended pro- injury to them. The right to make complaint on that hibited the Federal Reserve Bank from paying for the cost ground would be confined to the United States or to indi- of remission. Consequently it was disabled from collecting viduals who were injured by the depletion of the banks' through the regular channel from all banks which insisted assets. If the purpose of the prohibition was altogether on deducting for the cost of remission. In the case of all to save expense to the Federal Reserve Banks and if the such banks it had the alternatives of not handling their statute evinced no policy to prevent the Reserve Banks checks at all or of presenting them for collection over the from handling checks of nonmembers and nondepositing counters of the drawee banks by agents, express companies, banks, if it incurred no expense, the mere incidental or the postal authorities. One contention of the appellants injury that appellants suffered from the handling of such is that the Federal Reserve Act prohibited the Reserve checks would give it no right to complain of an expendi- Banks from handling any check, the collection of which en- ture from which it could suffer no injury. The Federal tailed any expense, to whomsoever payable; and that their Reserve Act does not only not evince a purpose to deny endeavor to collect checks by presenting them at the coun- to the Reserve Bank the power to collect checks of non- ter of the drawee was ultra vires, because expense was member and nondepositing banks, but exhibits a general necessarily incident to that method. Another contention policy to encourage a uniform and universal system, of of appellants is that though the Federal Reserve Bank had par clearance, which could only be accomplished by con- the lawful right to handle such checks it was making or ferring power upon the Reserve Bank to handle checks intending to make an oppressive use of its right, by so drawn on all banks upon any terms that might be essential exercising it as to amount to coercion or duress and with a except the payment to the remitting bank of compensation wrongful and malicious motive. for remitting. If the Federal Reserve Bank, had availed itself of the The appellants contend further that, even if the Federal services of the complaining banks in the remission of the Reserve Bank had the right to handle checks of non- proceeds of checks sent them for collection through the member banks by presenting over the counter, it could mails, in view of their known usage to deduct for exchange not exercise that right oppressively; that it was threaten- it would have been liable for the reasonable value of such ing to do so, and should therefore have been enjoined. The services, except for the statutory inhibition against it. The prayer of the bill is not limited to an oppressive use of the purpose of the bill, however, is not to collect compensation method complained of but extends to any use of it what- for services rendered and to which the banks had a proper- soever. The bill seeks to enjoin the appellee bank "from ty right; but to compel the Federal Reserve Bank to avail collecting or attempting to collect any check against itself of services, which it was unwilling to and disabled petitioners or against any other bank in like condition, who from accepting, by restraining it from using any method may become a party hereto, except in the usual and ordi- which did not require the use of such services. Complain- nary channel of collecting checks through correspondent ing banks had no property right that was infringed by the banks or clearing houses, said channels being well estab- refusal of the Federal Reserve Bank to avail itself of their lished and well understood by defendants and all others services in remitting or that a court of equity could be familiar with the banking business." Appellants' com- called upon to protect. It was under no legal duty to ac- plaint is of the method and not of an abuse of it. The cept the services of the complaining banks, even had there effect of the writ prayed for would be to entirely prevent been no statutory obstacle to its doing so. It also had the the appellee bank from collecting checks in any other legal right to present the checks of the complaining banks way than by transmission to the drawee bank, and the to them for payment singly or in numbers over their remission of the proceeds by the drawee bank through the

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mails; and so to prevent their collection by presentation ner, on which a court of equity would be justified in acting. over the counter even though presented regularly and Nor does the bill charge the appellee bank with acting without accumulation. from a merely malicious motive if that is material. It The right to the relief sought is also based upon the does aver that the purpose of the appellee was to compel doctrine of conspiracy. An illegal conspiracy is' not the appellants to accept the lesser of two evils and to remit predicable upon the doing of a lawful thing by lawful at par for checks drawn upon it. If this charge was borne means, even when done in concert or combination. The out by the exhibits, which it is not, it would not constitute bill fails to show a concert or combination that would legal duress, on which a legal complaint could be predi- amount to a conspiracy in law, though its object or the cated. The exhibits show that the adoption of a system means by which it was to be accomplished were unlawful. of universal par clearance was advocated in good faith by The acts complained of were those of the defendant, the the appellee bank as a proper banking policy, and as well Federal Reserve Bank. No legal conspiracy could exist by Congress and the Federal Reserve Board. The adop- between it and its officers, the other defendants. The tion of appropriate means by the appellee bank to accom- amended bill charges a conspiracy between the Federal plish this end can not with any propriety be attributed Reserve Bank of Atlanta and the Federal Banks of other to malice on its part against appellants and other banks districts, upon the theory that all the Federal Reserve in like condition. Nor does the adoption of the method Banks are under control of the Federal Reserve Board. of presenting checks over the counters of the drawee bank The Federal Reserve Banks of other districts have no imply an attempt to coerce them into becoming member power to act upon the petitioners or the intervenors. or depositing banks. The Federal Reserve Bank was Their jurisdiction in that respect is confined to their own interested to supply a universal clearance at par for its districts. Being without power to injure the compJaining member and depositing banks. It could accomplish this banks they could not be members of a conspiracy against only by accepting from its member and depositing banks such banks. The members of the Federal Reserve Board all checks tendered it by them upon whatever banks are not charged as conspirators. That other Federal Re- drawn. If drawn upon a nonmember and nondepositing serve Banks had taken coercive steps against State banks bank, which refused to remit at par, it was disabled under in their districts to enforce the par clearance policy, as the statute from handling such checks through the charged on hearsay information in the amended bill, has method of transmission of the checks and remittance of no bearing on the cause of action relied upon by appellants the proceeds through the mails. It could only collect in this case. Appellants can take nothing from the doc- such checks by presentation in person to the drawee bank. trine of conspiracy. It is therefore reasonable to suppose that its declared pur- The principle that one must so use his property as not pose of making such presentations was in furtherance of its to unnecessarily and maliciously injure his neighbor, even policy of furnishing complete clearing facilities to its though his act is otherwise lawful, is also invoked. Con- member banks, and was not for the purpose of injuring or ceding that the accumulating of checks, and their presen- destroying the drawee banks, or of coercing them into tation, when accumulated, with the intent to embarrass becoming member or depositing banks with it. It con- and injure the drawee bank, might constitute an actionable stituted an essential step without which universal par wrong and one that might be prevented by injunction; we clearance was not possible of accomplishment. do not think the amended bill presents any such case. We conclude that the district court had jurisdiction and There is no specific charge in the bill of any threat to that its decree dismissing the bill for want of equity was present the checks in any accumulated or oppressive man- without error and it is therefore affirmed.

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RETAIL TRADE. computed from such percentages being weighted according to volume of business done In the following tables is given a summary of during the calendar year 1919. For the month the results obtained during the past few months of October the tables are based on reports from in the 12 Federal Reserve districts on the regu- 24 stores in district No. 1,17 in district No. 2, 38 lar retail trade index form from representative in district No. 3, 16 in district No. 4, 24 in department stores. In districts Nos. 1, 5, 9, district No. 5, 9 in district No. 6, 6 in district 11, and 12 the data were received in (and aver- No. 7, 6 in district No. 8, 10 in district No. 9, ages computed from) actual amounts (dollars). 12 in district No. 10, 17 in district No. 11, and In districts Nos. 2, 3, 4, 6, 7, 8, and 10 the 28 in district No. 12. The number of stores material was received in the form of percent- reporting varies from month to month, due to ages, the averages for the cities and districts the inclusion of new stores in the reporting list.

Condition of retail trade in the twelve Federal Reserve districts. [Percentage of increase.]

Comparison of net sales with those of corresponding'period previous year.

District and city. Jai1. 1, 1920, to close of— July I, 1920 to end of— Feb., Mar., Apr., May, June, July, Aug., Sept., Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. Feb., Mar., Apr., May, June, July, Aug., Sept., Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920.

District No. 1: Boston...... 15.4 38.9 16.8 19.4 27.8 16.3 11.6 16.0 0.1 24.9 30.7 26.1 24.7 25.3 16.3 24.1 15.9 9.7 Outside 36.1 29.4 26.0 25.5 28.5 27.2 9.1 14.7 2.2 41.6 36.4 33.1 30.5 30.0 27.2 18.1 16.9 11.1 District 18.3 37.5 18.5 20.7 28.0 19.9 10.9 15.4 .6 32.5 31.6 27.5 25.8 26.2 19.9 15.1 15.2 10.1 District No. 2: N.Y. City and . 29.9 66.6 15.0 41.1 26.4 22.4 10.9 13.2 1.7 39.8 59.3 35.0 35.3 32.7 22.4 13.0 3.6 5.2 Outside 50.4 22.4 22.8 32.3 26.9 26.4 16.9 15.4 38.1 33.6 30.1 31.7 26.9 27.1 23.4 19.6 District 64.8 15.8 35.4 28.4 24.4 15.9 3.6 6.2 57.0 34.9 33.7 33.8 24.4 17.5 10.2 10.0 District No. 3 17.6 37.5 12.4 50.7 34.3 23.8 22.6 15.2 15.8 20.3 26.2 20.5 30.9 31.0 23.8 24.9 19.6 17.3 District No 4 28.6 45.5 18.4 31.3 31.5 29.9 25.7 24.6 20.8 36.0 38.2 33.6 32.1 34.6 29.9 27.3 25.9 23.9 District No 5 14.2 23.1 .9 11.0 21.4 15.7 20.9 7.5 12.4 5.3 12.1 8.8 9.3 11.4 15.7 21.1 14.1 13.6 District No. 6 27.4 23.4 31.0 24.3 11.6 27.6 12.6 25.1 29.9 22.0 28.1 29.3 11.6 19.6 16.9 19.7 District No 7 51.7 65.2 33.3 49.7 59.6 41.2 33.2 28.6 8.3 "50.Y 57.4 43.5 49.6 58.7 41.2 29.6 35.5 32.6 District No 8 20.8 11.8 10.5 18.0 16.8 16.5 District No. 9 17.0 4.3 11.8 11.6 8.8 .3 12.9 19.8 5.6 12.6 11.6 District No. 10 '24*6" 19.6 10.9 12.9 14.1 9.9 7.8 11.9 *26."9" 24.9 21.2 17.9 14.1 "i4.*2" "ii.'i" **"5."2 District No 11 25.9 25.6 12.4 16.0 25.9 25.2 20.9 21.6 District No. 12: Los Angeles... 51.6 58.4 43.6 38.2 39.0 35.1 48.9 29.1 19.3 68.3 61.2 56.1 52.2 49.8 35.1 42.4 37.9 33.9 San Francisco... 26.9 35.4 28.5 40.9 23.6 21.0 18.6 10.4 11.5 58.9 39.7 36.6 37.6 35.3 21.0 19.6 17.3 15.4 Oakland 27.4 31.0 14.9 17.1 15.2 16.9 15.3 22.0 34.8 32.3 27.9 25.6 23.3 16.9 14.7 21.3 Sacramento 22.6 65.1 33.9 34.4 32.1 20.1 3.1 9.9 36.6 60.9 47.5 39.4 38.3 20.1 13.3 16.1 Seattle 22.4 19.2 4.3 6.3 U.I .2 18.0 i*4.*5* U4.6 23.0 21.8 16.2 13.9 13.4 .2 14.4 14*2" 1 7.3 Spokane 23.6 19.8 10.9 48.8 62.8 22.7 12.7 4.6 30.1 26.8 23.1 29.1 35.7 22.7 16.8 9.4 Salt Lake City 11.5 10.5 7.1 26.4 18.3 20.6 11.6 8.9 18.1 15.1 12.8 16.4 14.7 20.6 16.1 14.0 District 31.1 37.8 13.8 31.2 27.8 21.2 21.7 14.5 8.2 46.5 41.0 36.9 34.7 33.2 21.2 21.4 19.8 16.8

1 Decrease.

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Condition of retail trade in the twelve Federal Reserve districts—Continued,

f Percentage of increase.]

District No. 1: Boston Outside

District No. 3 District No. 4 District No. 5. District No. 6. District No. 7 District No. 8 District No. 9 District No. 10.... DistrictNo.il.... District No. 12: Los Angeles.. San Francisco Oakland Sacrament o... Seattle Spokane

District 1.2

Percentage of average stocks at end of each month to average Percentage of outstanding orders at end of month to monthly sales for same period. total purchases during previous calendar year.

District and city. Feb. 1,1920, to end of— July 1,1920, to end of— Feb., Mar., Apr., May, June, July, Aug., Sept. Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. Feb., Mar., Apr., May, June, July, Aug., Sept., Oct., 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920.

District No. 1: Boston 382.2 509.5 389.8 348.4 339.2 419.2 447.1 412.7 388.4 19.6 18.8 15.8 15.4 18.5 13.7 11.4 7.5 Outside... 402.5 320.5 464.7 442.5 431.7 436.4 472.1 485.9 482.6 19.7 18.6 15.5 7.5 10.0 14.2 14.7 10.8 District 385.5 389.9 405.2 366.5 358.0 425.1 455.1 433.5 415.6 19.6 18.7 15.7 12.7 12.3 12.0 14.0 13.1 9.1 District No. 2: New York City and Brooklyn 405.6 384.7 403.1 392.4 379.9 390.0 489.3 613.7 479.4 22.9 18.8 16.8 15.7 16.8 14.7 9.2 Outside *... 372.3 392.8 415.7 349.5 485.8 506.3 492.1 441.3 20.3 21.8 13.9 17.7 18.9 14.3 12.0 6.6 District 383.4 402.0 399.4 369.9 440.1 496.7 573.9 466.9 19.0 18.2 14.8 17.2 17.4 15.9 13.6 8.1 District No. 3 380.0 347.0 382.6 357.5 399.8 471.2 500.3 437.2 27.9 24.8 23.5 17.6 19.3 19.8 14.2 10.1 ~5.9 District No. 4 386.3 369.1 439.0 362.8 362.3 403.6 412.7 468.8 466.8 18.6 19.4 34.8 I 13.2 16.2 18.9 17.0 13.3 7.6 District No. 5 456.8 423.8 422.2 I 421.5 407.0 505.9 560.7 512.9 489.0 20.4 16.9 12.1 9.9 9.7 16.1 14.8 8.4 7.1 District No. 6 403.9 20.9 20.1 20.6 17.0 17.4 15.6 11.0 6.9 District No. 7 298.6 332.5 ! 305.8 328.3 432.7 427.9 410.7 371.0 29.7 31.4 31.2 31.9 19.5 19.3 23.2 15.7 5.1 District No. 8 432.6 377.0 396.8 17.2 9.2 6.1 District No. 9 189.4 | 31.8 109.0 107.9 337.6 96 i95 2O.'6" 13*7 9.1 12.4 District No. 10 '337.'6* 272.1 i 285.4 353.7 384.1 334."6" 340.4 343.3 iie 18.0 5.4 25.3 15.6 9.7 3.1 DistrictNo.il 425.5 523.9 454.0 18.6 12.7 10.0 4.1 District No. 12: Los Angeles 418.3 468.3 390.7 480.4 481.3 522.5 454.2 486.0 462.5 37.1 33.9 39.0 | 29.7 28.2 22.8 15.5 12.0 9.3 San Francisco. 477.5 494.9 492.3 ! 469.8 508.8 539.9 512.8 511.5 511.9 31.9 31.0 27.7 ! 23.9 26.0 25.9 21.1 10.8 13.6 Oakland 581.6 610.7 585.2 { 589.5 573. 625.1 598.3 732.5 Sacramento 533.4 531.3 423.3 387.4 Seattle 6656 5426 527.9 539.7 524.6 470.2 532.7 568.'6' 502.5 22. 6 176 17.2 ! 14.2 ie.Y i63 i22 6.4 Spokane 755.9 605.8 528.8 605.4 579.4 652.6 675.5 579.0 40.6 34.7 ! 31.1 25.1 29.9 Salt Lake City . 18.7 District 534.7 515.3 456.0 508.0 516.0 536.5 489.6 504.0 467.3 31.7 27.2 21.6 23.2 23.1 22.3 14.2 9.5 9.8

1 Decrease.

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FOREIGN TRADE INDEX. There is presented below a series of indexes Total exports, after a slight increase during designed to reflect movements in foreign trade September, showed a large increase during of the United States, with fluctuations due to October. This increase was noted in every price changes eliminated. The commodities class of exports, being practically the same in chosen for these indexes are those for which each case. Total imports on the other hand prices are compiled by the Federal Reserve showed a further large decrease. Although Board in the preparation of its international the imports of consumers' goods showed a price index. The list includes 25 of the most slight increase, the imports of both raw ma- important imports, the value of which in 1913 terials and producers' goods showed a very formed 47.7 per cent of the total import values, large decrease, more than offsetting the in- and 29 of the most important exports, the crease of consumer's goods. value of which in 1913 formed 56.3 per cent of the total export values. The list of the commodities is given in the July BULLETIN.1 .

Value of exports and imports of selected commodities at 1913 prices. [In thousands of dollars; i. e., 000 omitted.] [Monthly average values, 1913=100.]

Exports. Imports.

Raw materials Producers' Consumers' Grand total Raw materials Producers' Consumers' Grand total (12 commodi- goods (10 com- goods (7 com- exports (29 com- (10 commodi- goods (12 com- goods (3 com- imports (25 com- ties). modities). modities). modities). ties). modities). modities). modities).

Index Index Index Index Index Index Index Index Value. num- Value. num- Value. num- Value. num- Value. num- Value. num- Value. num- Value. num- ber. ber. ber. ber. ber. ber. ber. ber.

1913. January 100,027 116.8 11,762 101.4 30,715 100.9 142,504 111.6 61,347 121.9 40,107 108.3 14,219 108.0 115,673 115.1 February... 71,074 83.0 12,266 105.8 30,790 101.2 114,130 89.4 55,332 110.0 41,060 110.9 14,335 108.9 110,727 110.1 March 61,681 72.0 11,836 102.1 28,698 94.3 102,215 80.1 55,555 110.4 45,753 123.6 13,378 101.6 114,686 114.1 April 71,446 83.0 14,128 121.8 28,708 94.3 114,282 89.5 52,271 103.9 42,346 114.4 10,896 82.7 105,513 104.9 May 68,856 80.4 11,661 100.6 29,923 98.3 110,440 86.5 50,089 99.5 38,409 103.7 7,718 58.6 96,216 95.7 June 46,963 54.8 11,612 100.1 28,242 92.8 86,817 68.0 40,822 81.1 38,606 104.3 8,382 63.7 87,810 87.3 July 51,325 59.9 11,109 95.8 27,686 91.0 90,120 70.6 40,298 80.1 35,990 97.2 9,698 73.6 85,986 85.4 August 74,869 87.4 11,547 99.5 29,370 96.5 115,786 90.7 42,470 84.4 37,385 101.0 11,078 84.1 90,933 90.4 September.. 103,614 120.9 10,622 91.6 32,190 105.8 146,426 114.7 52,659 104.6 41,184 111.2 15, 883 120.6 109,726 109.2 October.... 137,772 160.9 12,608 108.7 34,612 113.8 184,992 144.9 44,407 88.2 22,721 61.4 15,929 121.0 83,057 82.6 November.. 126,836 148.1 9,987 86.1 31,246 102.7 168,069 131.6 48,107 95.6 28,788 77.8 15,059 114.4 91,954 91.5 December.. 113,326 132.3 10,053 86.7 33,089 108.7 156,468 122.5 60,904 121.0 31,929 86.2 21,446 162.9 114,279 113.7 Year.. 1,027,789 100.0 139,191 100.0 365,269 100.0 1,532,249 100.0 604,261 100.0 444,278 100.0 158,021 100.0 1,206,560 100.0 1919. January 84,066 98.2 18,444 159.0 56,748 186.4 159,258 124.7 44,552 88.5 53,071 143.3 14,434 108.1 112,057 111.4 February... 58,488 68.3 14,598 125.9 53,338 175.2 126, 424 99.0 47,774 94.9 66,708 180.2 14,230 109.6 128,712 128.0 March 57,659 67.3 16,161 139.3 61,585 202.3 135,405 106.1 54,947 109.2 82,546 223.0 25,223 191.6 162,716 161.8 April 65,112 76.0 19,356 166.9 80,639 264.9 165,107 129.3 63,385 125.9 88,017 237.7 18,869 143.3 170,271 169.3 May 67,595 78.9 15,972 137.7 58,731 192.9 142,298 111.4 81,274 161.4 89,890 242.8 24,861 188.8 196,025 195.0 June 98,335 114.8 28,618 247.1 96,088 315.1 223,041 174.7 86,256 171.4 61,886 167.2 18,512 140.6 166,654 165.7 July 71,917 84.0 17,150 147.9 52,553 172.7 141,620 110.9 86,443 171.7 77,401 209.1 29,492 224.0 193,336 192.3 August 81,250 94.9 19,574 168.8 49,194 161.6 150,018 117.5 85,571 169.9 42,132 113.8 20,953 159.1 148,656 147. 8 September.. 70,285 82.1 19,359 166.9 43,342 142.4 132,986 104.1 123,524 245.3 70,033 189.2 25,240 191.7 218,797 217.6 October 70,240 82.0 16,844 145.2 45,983 151.1 133,067 104.2 99,127 196.9 74,730 201.9 20,386 154.8 194,243 193.2 November.. 99,589 116.3 15,740 135.7 46,473 152.7 161,802 126.7 98,690 196.1 79,198 213.9 21,254 161.4 199,142 198.1 December.. 89,585 104.6 13,208 113.9 43,563 143.1 146,356 114.6 79,965 158.9 71,886 194.2 21,521 163.4 173,372 172.4 Year.. 914,121 88.9 215,024 154.5 688,237 188.4 1,817,382 118.6 951,508 157.5 857,498 193.0 254,975 161.4 2,063,981 171.1 1920. January 93,141 108.7 15,647 134.9 35,406 116.3 144,194 112.9 103,796 206.2 90,655 244.9 24,064 182.7 218,515 217.3 February... 70,130 81.9 14,198 122. 4 41, 645 136.8 125,973 98.7 87,086 173.0 107,162 289.5 19,964 151.6 214,212 213.1 March 90,805 106.0 17,279 149.0 56,428 185.4 164,512 128.9 97,039 192.8 125,496 339.0 25,999 197.4 248,534 247.2 April 68,048 79.4 17,063 147.1 51,689 169.8 136,800 107.1 87,588 174.0 97,187 262.5 29,076 220.8 213,851 212.7 May 63,650 74.3 17,546 151.3 62,457 205.2 143,653 112.5 64,177 127.5 84,134 227.2 14,887 113.1 163,138 162.3 June 55,200 64.5 14,663 126.4 46,113 151.5 115,976 91.1 75,225 149.5 95,699 258.5 21,463 163.0 192,387 191.3 July 66,924 78.1 19,138 165.0 43,325 142.4 129,387 101.3 60,942 121.0 93,910 253.7 24,562 186.5 179,414 178.4 August 67,225 78.5 15,708 135.4 28,594 94.0 111,527 87.3 61,321 121.8 94,866 256.2 22,624 171.8 178,811 177.8 September.. 70,699 82.5 13,883 119.7 28,599 94.0 113,181 88.6 51,388 102.1 61,163 165.2 17,226 130.8 129,777 129.1 October 101,669 118.7 17,649 152.2 37,859 124.4 157,177 123.1 44,866 89.1 48,683 131.5 17,613 133.8 111,162 110.6

i An additional list of 11 commodities of imports is given in October BULLETIN.

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WHOLESALE PRICES ABROAD.1 Index numbers of wholesale prices (all commodities). [1913=100.]

United United France; Australia; Calcutta, States; United Bulletin Italy; Sweden; Japan; Common- Canada; India; Federal Bureau of Kingdom; dela Prof. Svensk Bank of wealth Depart- Depart- Reserve Labor Statist Statistique Bachi(40 Handels- Japan for Bureau ment of ment of Board (90 Statistics (45 com- Ge"ne"rale commodi- tidning Tokyo (56 Census and Labor (272 Statistics quota- (328 quota- modities). (45 com- ties). (47 quota- commodi- Statistics quota- (75 com- tions). tions). modities). tions). ties). (92 com- tions). modities). modities).

1913. 100 100 100 100 100 2 100 100 100 1914.. 100 101 101 95 116 96 3 100 101 * 100 1915.. 101 126 137 133 145 97 141 110 1916.. 124 159 187 202 185 117 132 135 1917.. 174 206 262 299 244 149 5 155 177 1918.. 197 226 339 409 339 197 170 206 1919.. 215 242 356 364 330 240 180 217 1919. October 212 223 264 382 388 307 271 200 222 November 219 230 271 405 436 308 280 199 227 December 226 238 276 423 455 317 288 197 238 1920. January 242 248 288 487 504 319 301 203 248 218 February 242 249 306 522 556 342 313 206 254 209 March 248 253 307 555 619 354 321 209 258 198 April 263 265 313 584 679 354 300 217 261 200 May 264 272 305 550 659 361 272 225 263 210 June 258 269 300 493 615 366 248 233 258 206 July 250 262 496 613 363 239 234 256 209 August 234 250 501 632 365 235 236 244 209 September 226 242 292 526 660 362 230 230 241 208 October 208 225 282 503 665 346 226 234 206

1 The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the BULLETIN for January, 1920. In all cases except that of the United States the original basis upon which the index numbers have been computed has been shifted to the 1913 base. The monthly and yearly index numbers are therefore only approximate. The latest figures are received by cable and are subject to correction. 2 July 1, 1913, to June 30, 1914=100. 3 July, 1914=100. 4 End of July, 1914=100. 5 Last six months of 1917.

Business depression appears to have become ENGLAND. more general in foreign countries during October than was the case in earlier months. As in the United States, prices in England In spite of the instability of prices and ex- declined more rapidly in October than at any change rates, production and trade in most time since the downward movement began. countries increased during the first part of Practically all lines have now been affected 1920. This was strikingly the case with the by the readjustment except meats and coal. leading European countries. In recent months, Where prices have been fixed by the Govern- however, a change has set in, October reports ment, as is the case with wheat, they have not emphasizing the curtailment of production and as yet been reduced. Although the Statist the decrease in trade. Prices began to decline index shows an advance for vegetable foods pretty generally in the spring, but in many cases as a whole, the reports from the American the rate of decline was gradual as compared consul in London show downward movement with the previous rate of increase, and it was not of all of the leading cereals with the exception until the last six weeks that the movement be- in wheat. Sugar and coffee likewise declined came very widespread. Food and fuel prices during the month of October, but butter and are still at approximately the old high levels in meats increased. As was the case in practically most European countries. In Italy prices as a all markets of the world, cotton, wool, and whole are still rising and the same is the case hides continued to decline and uncertainty was with Germany, although both countries have prevalent in the silk markets. Authoritative been through a period of falling prices during quotations on semifinished and finished textiles the year. In England, Canada, Japan, and are exceedingly hard to' obtain, but all reports the United States prices have been falling seem to show a wide variation in quotations, uninterruptedly for several months, while in depending apparently on the eagerness of indi- Sweden and Australia the shift downward is vidual sellers to liquidate. In the Egyptian of recent date. In France prices have fluctu- cotton industry output has been curtailed for ated during the year but were declining in some time, and early in December the section October. of the trade using American cotton announced

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a weekly reduction in working hours from 48 tween their delegates and the Government to 24. Throughout the coal strike it is reported for the adjustment of the strike, it was de- that the latter group worked at not more than cided that it should be called off and the one-half normal capacity. The falling off in terms of the agreement put into effect. prices of all kinds of wool has been exceedingly This involves an increase of 2s. a shift to all great, but as the level was originally several persons of 18 years or over, Is. to persons of times higher than before the war, prices on 16 or 17, and 9d. to persons under 16, this Australian wools are still well above the 1913 schedule to be effective at once and to last level. The South American staple is nearer the until the first of January. These increases prewar level. will continue in effect during January only After a period of great activity, the iron and if the money returns from the export trade steel industries have also begun to curtail justify it. As was stated in the November production. Price cutting had not become BULLETIN, a national committee is to be cre- prevalent until very recently, but within the ated whose duty it will be to prepare a past few weeks leading quotations of pig iron scheme for submission to the Government and semifinished steel products have shown not later than March, 1921, for regulation of considerable reductions. Copper, zinc, tin, wages in the industry. The terms of settle- and lead have also been affected during the ment which have now reached this country in recent period of falling prices. Gasoline, rubber their official form show the situation to be and certain important chemicals are also somewhat different from that reported by the slightly lower than during recent months. press at earlier dates. Although coal pro- It may be concluded, therefore, that except duction is one factor taken into consideration in industries which are more or less controlled, in adjusting the wage schedule, another im- the price decline has been general. The extent portant factor is that of the quantity exported. of price cutting, however, seems to have been Portions of the agreement are published below: less great than in the United States. The index The basis on which the advance shall be adjusted is as number of wholesale prices published by the follows: If the weekly average of the proceeds of export Statist, follows: coal during the test period are maintained at the weekly average of the proceeds of export coal during the Septem- Statist index number of wholesale prices. ber quarter the advance shall be Is., 6d., and 4M., respec- [1913=100.] tively. If (after deduction of the cost of extra output) they exceed the September figure, an additional 6d., 3d., and 2^d., respectively, will be paid for every complete i Vege- Ani- Sugar, Food- Min- Tex- mal coffee, Sun- Mate- £288,000 of the excess. Date. | table stuffs. erals. tiles. dries, rials. I foods. foods. tea. (c) For this purpose the amount of export coal in each period shall be assumed to be the excess of the tonnage 1913 100 100 100 100 100 100 100 100 produced over the rate of 219,000,000 tons annually; the 1914 110 100 107 105 90 97 105 98 proceeds shall be calculated by multiplying that excess 1915 155 125 130 137 109 111 131 119 tonnage by the average f. o. b. price as shown in the trade 1916 193 152 161 169 140 152 163 153 1917 252 192 213 218 152 228 212 198 and navigation accounts for the quarter ended 30th 1918 248 210 238 229 167 265 243 225 September, 1920; and the cost of extra output shall be 1919: taken as 15s. per ton for each ton produced in excess of October... 260 226 322 253 222 305 284 270 November 266 226 332 258 226 325 292 280 the rate of output for the quarter ended 30th September, December. 270 228 336 260 234 334 296 286 1920. 1920: (d) As part of the settlement hereby concluded, the January... 274 230 356 265 256 343 312 302 February. 297 237 415 286 267 362 329 318 Government undertake to make an order under section March 345 237 393 300 263 360 318 312 (3) of the mining industry act which shall provide for April i 346 265 392 315 263 354 321 311 the variation of the one-tenth share of the excess profits May 351 244 473 318 273 308 311 298 June ' 359 244 496 325 269 308 282 285 of the industry payable to the owners under the coal July l 343 278 425 325 276 298 277 233 mines (emergency) act by the deduction therefrom or August ; 317 295 404 319 281 298 278 285 addition thereto of one quarter of said tenth part for each September.! 319 291 334 308 283 286 279 232 October 334 290 257 302 276 261 6d. by which the men's advance is reduced or increased. In other words, if from export coal during The coal strike which ended on November future months the returns continue to be on 8 had a serious effect not only on the produc- the same scale as those of the September tion of coal but also on that of practically all quarter, the miners will receive Is. more than industrial commodities. Coal production for under the old schedule. For every increase in October is the lowest of any month during weekly export returns of £288,000 above the the year. Pig-iron production and that of average for the September quarter, the in- steel ingots and castings were likewise at the dividual miner will receive 6d. per shift above low levels of the year, showing very striking the Is. already mentioned. For the purpose reductions from recent months. of arriving at an estimate of coal exported, Although more than half of the miners the surplus over the coal consumed at home voted against the agreement arrived at be- in the earlv months of 1920 was used as a basis.

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Deposit and note accounts. Government floating debt. Discount rates.

Currency 1920 notes and Deposits, Bank Coin and Treasury Temporary Total float- 3 months' 6 months' 1 certificates public and bullion.2 notes. outstand- other. bills. advances. ing debt. bank bills. trade bills. ing.

Knd of- 000's. 000's. 000's. 000's. 000's. 000's. 000's. Per cent. January... £84,258 £329,554 £155,272 £128,434 £1,111,000 £208,000 £1,319,000 February.. 92,426 324,994 190,147 138,946 1,070,000 188,000 1,258,000 March 99,371 335,372 137,170 140,672 1,107,000 205,000 1,312,000 April 101,284 337,377 140,381 141,018 1,048,000 249,000 1,297,000 May 103,614 348,316 117,784 140,955 1,062,000 221,000 1,283,000 June 106,658 357,356 191,715 146,382 1,050,000 244,000 1,294,000 July 106,869 361,911 133,796 151,734 1,058,000 204,000 1,262,000 August 106,294 356,012 115,955 151,529 1,067,000 183,000 1,250,000 September 108,791 353,795 127,167 151,615 1,139,000 143,000 1,282,000 October... 108,839 355,872 136,977 151,699 1,085,000 241,000 1,326,000

i Less notes in currency note reserve. 2 Held by the Bank of England and by the Treasury as note reserve. The situation of the Bank of England during respect of goods supplied or services rendered October was not strikingly different from that to it (the Soviet Government) or to the former of previous months, although deposits through- Government of Russia.77 The revised draft out the month were at a higher point than at has not yet been published, but because of the any time since the first two weeks in August. importance of the question article 8 of the The ratio of reserves to liabilities stood at original draft is published below. approximately 10 per cent for the month except (8) The Russian Soviet Government hereby declares for the first week, when it was under 9 per cent. that it recognizes its liability to pay compensation to Bank note circulation was at about the same British subjects in respect of goods supplied or services level as during September, and currency note rendered to it or to the former Government of Russia, or to circulation about 2 million pounds greater than Russian citizens, for which payment has not been made owing to the Russian revolution. The detailed mode of at the end of September. Holdings of coin and discharging this liability, together with all other questions bullion have been almost stationary since July. with regard to the liability of each of the parties toward A considerable change is to be noted, the other party or its nationals, shall be regulated by the owever, in the situation with regard to the treaty referred to in the preamble. The British Government makes a corresponding decla- floating debt, which stood at the end ofration. October at the highest point of the year. This is accounted for by the repayment of the A renewed interest in the provisions for the Anglo-French loan. No striking change has advancing of export credits by the British been made in policy with regard to the floating Board of Trade has resulted from the decline debt, but a new bond issue was placed on in foreign and domestic trade during recent November 1 and the old series withdrawn. months. According to the original law passed During the 6 months since the first series was in the early autumn of 1919, 26,000,000 pounds placed, only 11 million pounds have been sterling were made available for advances by subscribed. The new bond issue is being the Board of Trade to exporters of commodities placed on exactly the same terms as the first to foreign countries. The loans were intended one, the chancellor of the exchequer stating to finance shipments to foreign governments that if these bonds were made more attractive, as well as to individuals in foreign countries. housing loans could not be successfully placer! Provision was made for advancing up to 80 per In regard to foreign trade, developments of cent of the cost of the goods. At the end of the month have been of considerable interest. September, 1920, only a very small portion of Harmony has not been obtained in the matter this sum had been used by exporters, because, of the Russian trade agreement. On Novem- until recently, manufacturers were engaged to ber 20 the State Department gave out the text capacity on transactions which could be of the proposed agreement, but this appears to financed by ordinary banking methods. Ac- have been merely a tentative draft, not the cording to the new regulations, the Board of final agreement. Much controversy has been Trade will make advances up to 100 per cent raised in England over the original draft because in approved cases, but has a recourse of 20 it does not provide for the repayment by the per cent from the exporter. In other words, Soviet Government of state, municipal, and the risk of the exporter is as great as under the other money debts of the former Russian old provision, but the amount of the advance Government but merely for payment "in has been increased by 20 per cent. Advances

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are limited to two years, with a possibility of The following countries constitute the list of renewal, and manufactured articles only come nations to whom credits will be extended: within the provision of the law. Twenty-six Finland, Latvia, Esthonia, Lithuania, Poland, million pounds sterling is the limit of advances Czechoslovakia, Jugo-Slavia, Rumania, Georgia, which may be outstanding at any one time. Armenia, and Bulgaria.

Value of foreign trade. Production (metric tons). Ship tonnage under Date. Steel construc- Imports. Exports. Reexports. Coal. Pig iron. ingots and tion (gross castings. tons).

000's. 000'''s. 000's. 000's. 000's. 000's. Monthly average, 1913 £39,061 £43, 771 £9,131 24,336 869 649 i 2,002,699 1920. January 183,498 105,880 25,464 2 22,657 676 766 February 170,514 I 85,964 22,604 19,435 656 811 March 176,648 103,699 27, 031 19,505 710 854 3,394,425 April 167.154 106,252 20,407 17,131 655 779 May 166,816 119,319 20,260 2 22,131 738 848 June 170,491 116,352 20,124 19,048 726 745 3,578,000 July 163,342 137,452 17,848 , 2 22,926 750 800 August 153,255 114,903 13,368 f 16,970 752 709 September 152,692 117,456 13,351 18,885 741 884 3,731,666 October 149,389 112,295 16,134 14,044 533 544

1 Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter. 2 Five weeks in the month.

The total value of foreign trade continued Per cent to decline, returns for the month of October Average of trade- percent- union showing a falling off in total imports and total age in- members crease m unem- exports. Reexports were 3 million pounds cost of ployed living,1 (mem- greater than during the preceding month. base, bership Among the leading groups of commodities July, 1,636,012 which are exported, cotton yarns and manu- 1914. at end of factures show the most striking decline. Dur- September). 1920. ing the month of July exports in this line of January 125 2.9 goods were valued at approximately 40 million February 130 1.6 March 130 1.1 pounds. During the month of September April 132 .9 May 141 1.1 cotton yarns and manufactures to the amount Juno 150 1 2 of 38 million pounds were exported. During July 152 1.4 August 155 1.6 October, on the other hand, exports of this September 161 2.2 October 164 5.3 item had decreased to 32 million pounds. A November 176 somewhat similar decrease is found in the case 1 Food, rent, clothing, fuel, light, etc. of woolen yarns and manufactures, which were Figures applying to increase in cost of living are for the beginning of exported to the value of 14 million pounds in month and those for trade-union unemployment are for end of month. July as compared with 10 million pounds in FRANCE. October. The export of coal was naturally The most striking aspects of the financial considerably decreased, the July figure being and industrial situation in France during Oc- approximately 9 million pounds, the October tober were the increased prices of some impor- figure 6 million pounds. There has been a tant food products, the decline in prices of raw very material decline also in the value of the materials, and the increasing credit stringency exports of iron and steel, of coke, and of manu- in France. factures of vehicles, including locomotives, 1 Various reasons are assigned for the last- ships, and aircraft. named phase of the situation. It undoubtedly is due in part to the fact that world prices for i Errata.—In the November BULLETIN, it was stated that exports of rubber manufactures in September were valued at 7,800,000 pounds. some important raw materials have declined This was a mistake, the figure applying to the value of exported vehicles during September; the export of rubber manufactures amounted and that a great deal of capital is tied up in to only 927,000 pounds. stocks of finished goods which can not be dis-

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posed of at prices which will cover their original It is difficult to tell from the statements of cost. There are other reasons for the strin- the private banks how much the credits they gency in France, however. One of these is set extend to industry have increased in the last forth in a memorandum recently drawn up by two years, since they report in one item bills the Chamber of Commerce of Lyons. This doc- discounted and short-term government securities ument comments on the fact that there has been held (bons de la defense nationale). The figures very little revival in France of the practice of on " debits in current account," although smaller discounting commercial paper, which disap- in amount, are more illuminating. They repre- peared there during the war," because deliveries sent the overdrafts, often covered by securities were then made only for cash, and the State, or other collateral, which French banks allow the principal buyer of everything, settled with their active business customers. its contractors in paper without fixed dates." The purchasers who have become accustomed Debits in current account. to paying in cash are now actually requiring [In thousands of francs.] credit, but are refusing to have their bills dis- Dec. 31, Dec. 31, Aug. 31, counted at the banks, thus compelling the 1918. 1919. 1920. sellers of goods to try to find the credit they Credit Lyonnais 662,466 1,098,769 1,425,597 require in other ways. The memorandum pro- Comptoir National d'Escompte de Paris. 201,752 495,921 543,254 tests against this procedure and urges the bank- Society Generate 663,971 986,640 1,454,463 ing and commercial world to help in stopping it. In speaking of the credit stringency, M. As the above table shows, there have been Robineau, the governor of the Bank of France, marked gains in these "current accounts" since said recently that while he is opposed to placing the armistice, although the increase is not alto- credit at the disposal of those who wish to use gether due to more active trade, but probably it for holding merchandise and raising prices, to the rise in prices during the period concerned. he is quite ready to assist manufacturers and The following table consolidates the individ- merchants whose operations are "free from ual tables, showing the condition of French the spirit of pure speculation." He pointed commercial banks, published in the October out that the discount operations of the bank issue of the BULLETIN and carries them up to have increased from 1,100,000,000 francs before August 31, 1920, the latest date for which such the war to 2,300,000,000 francs at present. statements are available: Development of the commercial banks of France. [Total for Le Credit Lyonnais, Le Comptoir National d'Escompte de Paris, and Le Socie'te' Ge"ne"rale pour Favoriser le De*veloppement du Com- merce et de I'lndustrie en France.] • [In thousands of francs.]

Dec. 31— Aucr. 31 1913 1914 1915 1916 1917 1918 1919 1920.

Cash in vaults and balance at banks 470,967 1,208,940 998,746 1,051,926 1,255,503 859,274 1,063,852 1,239,436 Bills discounted and short-time national de- fense securities 3,493,548 1,308,615 1,911,976 2,530,965 3,804,424 4,636,405 8,299,412 8,756,985 Advances on securities, including stock ex- change loans 1,058,257 920,172 682,379 636,133 632,292 587,780 746,254 790,750 Debits in current account 1,463,905 1,297,598 1,034,724 1,010,517 1,190,315 1,528,189 2,581,330 3,423,314 Securities, including rentes 63,200 68,647 92,842 86,203 80,826 79,356 81,995 79,508 Forward exchange operations h* 42,480 177,638 107,597 207,794 2 226,591 231,621 Due from banks and bankers 94,277 109,881 80,937 90,853 89,271 92,895 162,841 182,986 Customers' liabilities on acceptances * 175,076 31,269 49,002 54,008 47,195 23,408 2 3 83,514 • 89,270 Financial participations > 74,869 72,645 68,447 60,628 53,960 54,834 54,536 54,710 Coupons uncollected * 42,300 16,440 19,139 11,591 19,438 39,739 35,351 20,117 Agencies outside of Europe2 17,575 7,094 3,782 3,756 7,729 2,912 3,924 Real estate 101,410 104,297 105,288 105,316 105,350 105,475 107,263 106,422 Sundry assets l>2 119,005 25,904 101,771 114,093 123,513 154,903 203,849 189,542 Total : 7,174,389 5,171,502 5,191,513 5,933,627 7-, 520,413 8,372,964 13,650,712 15,164,661 LIABILITIES. Capital paid in 700,000 700,000 700,000 700,000 700,000 700,000 700,000 « 732,038 Heser v e 328,861 343,400 333,937 267,929 268,582 269,268 295,062 318,780 Deposits (checking accounts, deposit certifi- cates payable at sight, discount account) 2,071,097 1,355,141 1,336,010 1,659,703 2,192,327 2,579,301 4,166,845 4,785,373 Credits in current account 3,066,837 2,212,779 2,074,338 2,441,959 3,576,394 3,918,388 7,288,116 8,035,653 Deposits payable at fixed date 296,865 320,140 304,286 2,299,386 284,950 279,558 302,358 294,228 Acceptance liabilities 493,032 150,195 113,997 89,464 91,657 53,995 171,817 200,829 UncoHected funds i 98,815 95,566 82,455 94,440 129,373 2 158,245 Forward exchange operations h - 42,480 177,638 107,597 207,794 226,591 231,621 Agencies outside of Europe2 l 1,041 Profit and loss >« 18,371 14,754 29,319 33,423 37,790 42,454 25,429 10,910 Sundry liabilities 199,326 75,093 158,331 168,559 178,661 227,766 345,121 395,943 Total 7,174,389 5,171,502 5,191,513 5,933,627 7,520, 413 8,372,964 13,650,712 15,164,661 1 Le Credit Lyonnais. 2 Le Comptoir National d'Escompte de Par*s. * Le Societe* c&ierale pour Favoriser le De>eloppement du Commerce et de I'lndustrie en France. < This increase is due to the fact that the Comptoir National d'Escompte de Paris recently authorized an increase of 50,000,000 francs In its capital, of which 32,038,000 had been paid in on August 31,1920.

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There is an interesting contrast between the budget. The tax receipts for October amounted situation of the private banks and that of the to 1,332,000,000 francs, 212,000,000 francs Bank of France. Deposits of the latter bank more than those of the month previous, but have increased about 300 per cent and note 57,000,000 francs less than the budget estimate circulation over 500 per cent since 1913, for October. The deficit in receipts from the while deposits of the three private banks have tax on total business turnover was only 226,- increased only 136 per cent, their credits in 000,000 francs in October, as compared with current account 161 per cent and their cash in 407,000,000 francs in September. Receipts vault and balances at banks 161 per cent in from registration and stamp taxes, and from the same period. Government monopolies were, on the other The new loan, proceeds from which are to hand, much larger than had been expected. make up the deficit in the 1920 extraordinary The note circulation of the Bank of France budget, opened October 20. It is reported reached its peak October 7, when it stood at that subscriptions so far have been very satis- 39,567,000,000 francs. It declined after that factory, but no official figures are available date to 39,084,000,000 francs on October 28 on the amounts subscribed. Meanwhile the and stood at 38,806,700,000 on November 35. finance commission of the Chamber of Deputies The gold and silver reserves of the bank made is at work pruning the estimates for the 1921 slight gains during the month.

French financial situation.

[In francs.]

Bank of France. Situation of the Government.

Advances to the Govern- Govern- Price of Gold Silver Deposits i Circula- ment for ment3 Public 3 per cent reserves (000,000's) tion purposes revenue debt perpetual (000,000's) (000,000's) (000,000's) of the (000,000's) (000,000's) rente. war2 (000,000's)

1913, average... 3,343 629 830 5,665 320 35,000 86.773 1920, end of— January... 3,602 255 3,172 37,583 25,300 885 > 206,616 58.75 February.. 3,603 251 3,277 37,889 25,800 794 57.60 March 3,606 247 4.039 37,569 26,300 859 58.82 April 3,608 244 3,469 37,688 25,300 1,057 57.40 May 3,609 240 3,751 37,915 26,050 857 59.35 June 3,610 241 3,653 37,544 26,000 908 57.25 July 3,611 248 3,416 37,696 25,550 1,109 6 233,729 58.90 August 3,612 255 3,267 37,905 25,800 882 56.30 September. 3,531 256 3,307 39,208 26,600 1,120 54.15 October... 3,537 264 3,474 39,084 26,600 1,332 56.20

1 Includes Treasury and individual deposits. 2 Under the laws of Aug. 5 and Dec. 26, 1914, July 10,1915, and Feb. 16,1917. 3 From indirect taxation and Government monopolies. * Not including about 1,978 million francs held abroad, s As of Dec. 31, 1919. e Foreign debt calculated at par. The exchange situation continues to hinder October and stood at 16.495 francs the last foreign trade transactions. The value of the day of November. Italian exchange fell at English pound rose in Paris from 52.31 francs the beginning of October to bl\ francs to the on September 30 to 54.68J on October 28, and lira, but it recovered by the last of the montli by November 30 had reached 57.65 francs. to 59 francs. The mark fell from 24 francs on The dollar rose from 15.08 francs to 15.715 in October 1 to 21 \ francs on October 28.

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The following table shows the course of rapid. The Chambre Syndicale du Commerce French prices as reported by the Bureau de la a Sucre at Paris quoted No. 3 white sugar for Statistique G6nerale: immediate delivery at 338 francs per 100 kilos on October 5 and at 245 francs November 3. Group index numbers—France. Meanwhile increasing unemployment is re- [Bulletin de la Statistique Ge*ne*rale.] ported. A recent cable states that official [1913=100.] statistics on the subject place the number of former workers now unemployed in France Ani- Vege- Sugar, Raw mal table coffee, Foods Min- Tex- Sun- mate- at 125,000. The greatest depression has oc- Date. and (20). erals. tiles. dries. rials food. foods. cocoa. (25). curred in the metal, textile, and leather in- dustries. The Syndicate of the Metallurgists

1913 100 100 100 100 100 100 100 100 of the Seine reports that of its 160,000 workers 1914 103 103 106 104 98 109 99 101 normally employed in Paris, 25 per cent are 1915 126 126 151 131 164 132 145 145 1916 162 170 164 167 232 180 199 206 actually without work. The Government has 1917 215 243 201 225 271 303 302 291 1918 286 298 231 281 283 460 420 387 been attempting to relieve unemployment by 1919, end of— transferring men released from industry to October 402 337 268 353 295 554 403 405 November... 424 351 271 369 323 620 415 435 reconstruction work in the devastated dis- December... 432 380 278 375 357 649 419 454 1920: tricts. January 452 432 419 440 413 787 465 525 The following table was taken from a February... 484 474 436 474 444 828 503 561 March 500 516 439 498 460 884 548 600 document recently published by the French April 522 511 429 506 498 953 587 646 May 480 480 424 472 459 841 601 614 finance ministry, giving details as to the June - 482 400 392 434 428 734 517 540 quantity and value of French foreign trade July 501 370 405 432 469 746 500 548 August 515 359 399 432 475 737 524 558 for the first eight months of this year. September... 531 412 544 487 468 715 540 558 October 533 428 422 472 453 637 527 528 Exports from France, January through August. There were two trends in French commodity prices during October. Prices for meat, eggs, In metric tons. In thousands of francs. milk, butter, cheese, margarine, and potatoes 1913 1919 1920 19131 19192 19202 rose, while prices for nonferrous metal (except- ing lead), iron and steel prices, prices for sugar, Broad silks 4,261 3,439 5,736 274,676 807,805 ,381,944 raw cotton, raw wool, and crude rubber Cotton cloth 35,992 10,047 32,112 244,847 273,352 831,287 Woolen cloth 13,687 2,393 9,251 147,824 111,718 412,359 declined. Clothes of all kinds.. 4,973 1,844 5,602 158,520 370,400 1,031,911 Yarns 35,527 5,107 17,716 147,441 97,451 398,460 The reduction of iron and steel prices resulted Raw wool and wool from the cut in the price of foundry coke waste 55,600 3,676 28,246 212,421 78,523 627,800 Leather 10,012 3,560 12,159 95,083 129,440 333,501 announced by the Government the first of Furs 1,049 857 869 60,449 248,608 268,835 Leather manufactures 3,072 1,791 5,198 54,916 168,572 356,901 October. The slump in other metal prices Wines 125,575 78,036 144,208 130,591 225,203 337,814 Perfumes and soaps. 34,278 11,631 34,093 31,652 91,542 251,269 was due in part to the fear that a serious coal Pig iron, iron and shortage might result from the English strike steel 665,310 35,799 961,562 55,394 21,085 507,063 Machines and ma- and in part to conditions in the world metal chinery 54,807 31,795 51,872 80,800 157,442 308,999 Automobiles 17,560 1,531 30,522 154,279 33,010 708,971 markets. Lead prices rose steadily from 209 Tools and metal francs per 100 kilos in Paris on October 2 to manufactures 104,343 19,472 81,733 93,482 85,828 307,105 Manufactures of rub- 225.75 francs on October 30. ber and gutta- percha 4,733 5,756 11,527 68,333 143,799 284,038 Cotton prices in Havre fell from 492 francs Chemical products... 655,060 104,037 594,682 132,802 122,913 742,636 for 50 kilos on October 2 to 404 francs October Paper and paper 16, and closed the month at 430 francs. Stocks manufactures 43,275 19,903 35,465 106,581 134,501 235,337 of cotton at Havre on October 30 amounted to 117,348 bales, as compared with 140,686 bales i Valued at 1913 rates. 2 Valued at 1919 rates. a year ago at this time. Wool prices at Havre These figures show in striking fashion the fell steadily during the month. Buenos Aires actual increase in the quantities of goods ex- fine wool, which was quoted at 11.50 francs per ported in the first eight months in 1920 as kilo October 2, had fallen to 9.80 francs compared with 1919. In the cases of broad October 30. silks, clothes of all kinds, leather, leather manu- At Lyons inactivity was general throughout factures, wines, pig iron, iron and steel, automo- the month. Silk production has been some- biles, and manufactures of rubber and gutta- what reduced, and the price of Cevennes raw percha exports have been larger than in the same silk fell from 275 francs per kilo the last of period of 1913. The increase in pig iron and September to a nominal price of 245 francs iron and steel is particularly striking, and is October 22. due in part to the accession of Alsace-Lorraine. In sympathy with world prices the decline The following table gives total values for in sugar prices during the month has been very French foreign trade of the year:

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Foreign trade of France} [In thousands of francs.]

Impdrts. Exports.

Raw Manu- Raw Manu- Parcel Food. factured Total. Food. factured Total. materials. articles. materials. articles. post.

1913 average8.. 47,182 573,351 3 151,465 412,144 138,169 701,778 154,841 301,420 1919 average .. 719,122 , 101,811 660,610 2,481,543 80,805 161,401 440,314 43,577 726,097 1920: January 538,365 985,410 478,408 2,002,183 ^84,561 187,626 415,007 35,204 722,398 February.., 653,630 ,336,987 651,299 2,641,916 150,060 347,480 767,423 58,866 1,323,829 March 871,857 ,478,987 772,007 3,122,851 114,223 349,521 834,031 39,884 1,337,659 April 665,799 ., 398,592 813,216 2,887,607 125;678 353,344 844.901 52,987 1,376,910 May 547,825 ., 193,980 644,911 2,385,696 103,355 348,361 726,654 31,658 1,210,028 June 4 558,951 , 302,867 726,856 2,588,674 216,849 421,735 1,100,931 69,862 1,809,377 Julys August8... 723,749 171,091 905,613 2,800,453 210,888 440,482 1,631,883 116,255 2,399,508 September. 608,822 294,160 724,894 2,627,876 229,892 446,131 1,363,469 112,081 2,151,573 October 7... 667,709 243,294 684,442 2,595,445 262,808 297,464 1,597,808 2,332,552

1 Not including gold, silver, or the reexport trade. * Calculated in 1913 value units. 3 Calculated in 1918 value units. * January-June, 1920, figures are calculated in 1918 value units. French foreign trade figures are originally recorded in quantity units only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly state ments of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing during that year. Because of the disturbed price conditions in France this year, however, it was not until July that the 1919 price units were decided upon and applied. 5 Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible to give separate figures for that month, e Calculated in 1919 value units. 7 October figures subject to revision.

GERMANY. [In thousands of marks.] Receipts, The Reichstag began its fall session on April- October 27, when it was addressed by Herr June, 1920. Wirth, the finance minister, who spoke at Sales tax (law of 1918) 254,194 length on Government waste and extravagance Extraordinary war levy (1919). 204,245 Customs (Aufgeld) 382,666 and Germany's debts. On that date the Coal tax 891,565 funded debt stood at 91 billion marks, the Tobacco tax 285,266 floating debt at 157 billion marks, and by 2,017,936 spring the finance minister prophesied that the railroad and other debts would add 40 The Reichsbank statements for October show billion marks more, making a total of 308 that notes in circulation and Darlehnskas- billions. The following day the Reichstag senscheine reached a high point for the year started work on the budget for the fiscal on October 16 and have declined since that year ending March, 1921. Almost every de- date. Deposits were larger on September 30 partment of the Government reports a large than they had been since June 30. Since that deficit for last year. Only one, the economic date they have fluctuated, but have not risen ministry, shows a surplus. Government de- to the height of the September 30 figure. partments have been-forbidden to undertake Reichsbank. work entailing new expenditures without the [In millions of marks.] permission of the finance minister. The possi- Reserves. bility of a forced loan for the purpose of Reichs- improving the fiscal situation is still discussed. und Dar- Note cir- Deposits. Gold. lehns- culation. German tax receipts from April 1, 1920 (the kassen- beginning of the fiscal year), through June, scheine. 1920, were reported on November 1 to have June 6,1919.. 1,302 28,218 9,151 been as follows: 1920. 15,546 48,948 16,451 [In thousands of marks.] May 15... 1,092 May 31... 1,092 15,907 50,017 17,024 June 15... 1,092 16,189 50,809 15,313 Receipts, Increase June 30... 1,092 17,252 53,975 23,414 April- over the July 15... 1,092 17,210 53,847 14,851 June, same period July 31... 1,092 17,874 55,969 17,282 1920. in 1919. Aug. 14.. 1,092 17,964 56,462 15,573 Aug. 31.. 1,092 18,686 58,401 15,772 General 3 535 903 1 969 292 Sept. 7... 1,092 18,650 58,752 12,074 Post and telegraph 695,717 372,483 Sept. 17.. 1,092 18,849 58,928 17,207 Railroad 3, 687,515 2,604,642 Sept. 23.. 1,092 18,980 59,264 14,217 Sept. 30.. 1,092 19,861 61,735 20,054 7,929,135 4,946,417 Oct. 7.... 1,092 19,949 62,078 13,172 Oct. 15... 1,092 20,435 62,129 16,415 Oct. 23... 1,092 20,244 62,066 12,347 The most important of the general taxes are Oct. 30... 1,092 21,341 63,596 17,945 as follows:

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From the quotations available in this coun- per 100 kilos the first of the month, however, try it appears that the general trend of prices and the maximum price for potatoes was also in Germany during October was upward. Ex- raised. ceptions to this movement are prices for raw ' In general, reports seem to show that there cotton and iron and steel. The price of cotton was very little activity in German business in fluctuated, rising from 59 marks per kilo on October. The iron and steel works had orders September 20, falling again to 45 marks on from Russia and some other foreign countries, October 14, and rising to 49 marks by October but few domestic orders. Shoe factories were 30. On November 1 iron and steel prices were well supplied wdth orders, but in the textile and increased by the Eisenwirtschaftsbund 15-18 other industries unemployment was reported. per cent. Prices for important grades have, Coal production in the Ruhr reached its maxi- according to the Frankfurter Zeitung, been as mum for this year in September. Monthly follows since 1914: figures are as follows: German iron and steel prices. Ruhr coal production. Tons. [In marks per ton.] January 6, 660,000 February 6,880,000 Be- March 6,400,000 fore Janu- Dec. 1, Feb. 1, Apr. 1, June Aug. 1, the 1919. 1920. 1920. 1, 1920. 1920. April 6,510,000 war. 1919. May 7,090,000 June 7,450,000 July 7,560,000 Ingots 83-50 265 1,430 2,255 2,650 2,435 2,140 1,770 Billets 95 300 1,500 2,325 3,125 2,725 2,365 1,995 August 7, 290,000 Formed steel. 112 320 1,715 2,620 3,620 3,320 2,740 2,340 September 7, 590,000 Bar iron 98-100 335 1,745 2,650 3,650 3,200 2,840 2,440 Medium plates 110 420 2,545 4,470 5,535 4,775 4,060 3,360 German industry reports lack of coal in con- sequence of the increased deliveries to the allies since the Spa agreement. According to Prices for most nonferrous metals increased an official estimate, August deliveries to domes- in Germany during October, although they tic industries were less than those for July by were still far below the high levels of the the following amounts: early part of this year. This recent advance Tons. is contrary to the general trend of metal prices To electric light works 1 43, 600 in other countries. Since most of these metals To gas works 107, 400 are imported into Germany, the change was To state railroads 318,100 To other railroads 2, 600 probably caused by the unfavorable rise in ex- To other industries 312, 300 change rates during the month. The following For household purposes 2 100, 000 table shows metal prices in 1920: Total 884, 000 German metal prices in 1920. 1 Coke computed on the basis on tons of coal. 2 Estimated. Feb. June July Aug. Sept. Oct. 17. 22. 23. 20. 23. 21, The following figures on German bankrupt- cies indicate that the withdrawal of Govern- Aluminum 6,300 2,400 2,200 2,800 2,700 3,250 ment support is beginning to be felt by weaker Antimony 2,400 850 725 900 900 875 concerns, although the latest figure (that for Lead 1,750 425 475 620 680 745 Copper (refined) 3,550 1,125 1,200 1,500 2,000 2,050 the third quarter of 1920), is only about one- Nickel 8,200 3,800 3,600 4,000 3,800 4,650 Zinc 1,450 525 640 750 890 910 fifth of the prewar quarterly figures. Tin 14,600 4,200 4,450 5,150 6,150 6,150 Quicksilver 280 70 90 83 103 112 Bankruptcies in Germany, by quarters.

Hide prices also increased during the month, 1911 1912 1913 1914 1915 1918 1919 1920 but a report dated November 1 stated that the First quarter 2,411 2,341 2,721 2,428 1,594 241 285 207 rise seemed to have been arrested. Shoe prices, Second quarter 2,188 2,312 2,558 2,062 1,232 218 263 240 Third quarter 2,015 2,141 2,222 1,616 990 145 209 422 which began to decline in May, rose sharply in Fourth quarter 2,128 2,424 2,222 1,633 203 258 October, although they are still below the prices 778 Entire year.. 8,742 9,218 9,725 7,739 807 1,015 of April. First to third quar- 4, ter 6,614 6,794 7,501 6,106 604 757 Cotton yarn, which was quoted at 77^ marks 3,816 on September 11, rose to 92^ on October 23, and the price of cotton cloth rose slightly from Exchange rates were increasingly unfavor- August and September levels. Prices for silks able to Germany during October. The English also increased throughout the month. pound was worth 214.25 marks the last of Sep- Among the prices controlled by the Govern- tember and 249.75 marks the last of October; ment few changes were made in October. The the dollar rose from 68.180 marks to 72,555 in price of raw sugar was increased to 210 marks the same period.

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Berlin exchange onl—

Switzer- Holland. Brussels. Christiania. Stockholm. Italy. London. New York. Paris. land.

Marks to the Pounds Florin. Franc. Crown. Crown. Lira. sterling. Dollar. Franc. Franc.

Par 1.70 0.80 1.25 1.125 0.80 20.40 4.20 0.80 0.80 1920. End of— January. 36.465 2 6.990 17.480 2 18.980 2 5.995 2 324.750 2 7.193 17.48 February 35.960 7.168 16.733 18.130 5.245 331.150 97.900 6.908 15.685 Tyfarch 26.470 5.095 13.760 15.400 3.446 278.700 71.900 4.720 12.585 April . 21.178 3.646 11.188 12.388 2.498 223.250 58.650 3.446 10.388 Mav 11.988 2.872 6.044 7.193 1.948 134.850 34.950 2.897 i 6.244 June 13.586 3.307 6.269 8.492 2.313 151.850 38.450 3.137 * 6.968 July 14 136 3.422 6.634 8.841 2.248 156.300 41.450 3.207 7.073 August 15.734 3.636 7.043 9.990 2.298 177.300 49.900 4.465 I 8.242 September 18.931 4.336 8.616 12.188 2.572 214.250 61.180 4.121 1.9.915 October 21.878 4.825 9.815 13.886 2.647 249.750 72.555 4.525 11.239

1 Last Wednesday in month quotations. 2 Frankfort exchange.

JAPAN. Import tariff—Continued.

The new import tariff law, promulgated on Rate of duty (in July 27, became effective on August 1 of this yens). year. The purposes of the law are chiefly to Articles. facilitate Japanese trade in eastern markets, to New. Old. protect Japanese manufacturers, and to develop infant industries which sprang up during the Alcoholic beverage not otherwise provided for: 1. Containing less than 7 percent alcohol at war. The minister of finance, in introducing 15° C 27.80 20.00 the bill in the Diet, stated that "the principal 2. Others A. In bottles 124.00 110.00 features of the law are: (1) To furnish a good B. In other receptacles 73.90 60.00 Silkworm egg, cards Free. 0) measure of protection to dye and drug indus- Oil seeds (except panlownia seeds) Free. 0) tries; these industries were first seriously un- Salt Free. Furs of sheep and goats (per 100 kin): dertaken by Japanese during the course of Tanned .- 9.40 9.40 Other Free. 9.40 the great war, are still in their infancy, and re- Tortoise shells (per 100 kin) Free. (3) quire reasonable protection. (2) To facilitate Olive oi], in can or barrel ( per 100 kin) Free. 1.70 Animal fats (per 100 kin)' the importation of certain raw materials which Beef tallow Free. .80 Vegetable tallow or wax obtained from the seeds of are essential to her fundamental industries; the " Stillingia sebifera" (per 100 kin) Free. 6.00 consequently a number of articles have been Licorice (per 100 kin) Free. 2.00 Ipecacuanha root (per 100 kin) Free. 82.00 added to the free list. (3) To prevent dump- Cassia and cinnamrn bark (per 100 kin) Free. (*> Cinchona bark (per 100 kin) Free. 6.65 ing by foreign traders, and for this purpose Ryutan or gentian root (per 100 kin) Free. 2.85 a series of surtaxes have been arranged for. Rhubarb (per 100 kin) Free. 2.60 Apricot soed and bitter almond (per 100 kin) Free. (l) (4) In order to compensate for increased rates Nux vomica (per 100 kin) Free. (1) Ergot of nye (per 100 kin) Free. 14.30 on liquors of domestic production, the duties 6.10 Cloves (ner 100 kin) Free5 . on imported liquors are raised." Licorice extract ( ) 0) Bromine ( 0) A summary of the amendments follows: Salicylic and acetyl salicylic acid (per 100 kin) ? 11.60 Salicylate of sodio-theobromine (per 100 kin) 6 14.10 Hydfobromic acid, potassium bromide, and other ( ) Import tariff. bromides not otherwise provided for (per 100 kin) (6) 10.00 (Yen, $0,498; kin, 1.32277 pounds avoirdupois; liter, 1.05668 U. S. liquid Alcohol (r>er liter) 6 .73 quarts.] Denatured alcohol (r»er liter) (1.0)0 .73 Ant.ifebrin (per 100 kin) <•) 11.00 Chemical products derived from the fractional Rate of duty (in distillation of coal tar, except carbolic acid, sali- yens). cylic acid, bakelite, and medical drugs, and Articles. essences other than benzoldehyde, nitrobenzol, and nitratoluol (per 100 kin) T 2.75 1.00 .73 New. Old. Alcoholic medical preparations (per liter) Artificiolindigo Coal-tar dyes not otherwise provided for (per 100 kin)....: 7.00 Sake (per 100 liters) 24.20 17.00 Pitch and asphalt (per 100 kin) Free. .55 Chinese liquors, fermented (per 100 liters) 24.20 17.00 Gypsum, uncalcined (per 100 kin) Free. .06 Beer, ale, porter, and stout (per 100 liters) 16.40 12.00 Wines in bottle (per 100 liters) 47.80 40.00 1 Not specified in free list before. Wines in other receptacles (per 100 liters): 2 40 per cent ad valorem. . A. Containing less than 14 per cent of alcohol— s The present rates vary from 1.30 to 1.34 yen per 100 kin. a. Containing less than 1 gram of grape 4 20 per cent ad valorem. sugar in 100 cubic cm. at 15° C 22.80 15.00 & 10 per cent ad valorem. b Others 27.80 20.00 6 35 per cent ad valorem. B Others 37.80 30.00 7 Applicable only to aniline salt or hydrochlorate of aniline. Champagne and other sparkling wines (100 liters).. 108.00 100.00 s Dry, 40 yen per 100 kin. Liquid or paste, 20 per cent ad valorem.

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Import tariff—-Continued. with the same period of 1919, including cotton tissues, silk fabrics, cotton yarns, Rate of duty (in yens). refined sugar, porcelain, toys, coal, braids, Articles. timber, glass and glassware, cotton knit New. Old. goods, waste silk, Portland cement, tea, buttons, matches, hats and caps, paper, and Minerals and manufactures thereof, not otherwise rice. The nine important items showing a provided for: (1) Unworked Free. decrease were raw silk, beans and peas, (2) Other—Powdered or calcined Free. copper, starch, woolen cloth, spelter, leather Ores, matte, bottom, and mineral dust Free. Free. Platinum, iridiiun, osmium, palladium, radium, manufactures, beer, and iron and steel materials indium, and ruthenium Free. (10) Copper, waste or old, fit only for remanufacturing and shapes, raw silk registering the greatest (per 100 kin) Free. 1.30 decrease, namely, 40,000,000 yen. Of the 28 Lead, waste or old, fit only for remanufacturing (per 100 kin) Free, .30 important commodities on the import list, 21 9 Tin, waste or old, fit only for remanufacturing... Free. ( ) Brass and bronze, waste or old, fit only for remanu- registered gains. These are almost all raw facturing (per 100 kin) Free. 2.25 materials, fertilizers, and machinery, and were Metal or woodworking machinery, not otherwise provided for, including rolling machines, draw- purchased before the crisis in anticipation of ing machines, nail-making machines, molding machines, flanging machines, bending machines, postwar prosperity. They include raw cotton, riveting machines, etc., each weighing not more wool, oil cakes, iron and steel shapes, beans than (per 100 kin): (1) 25 kilos 50.00 37.50 and peas, Chilean saltpeter, sugar, woolen (2) 50 kilos 30.00 22.50 (3) 100 kilos ,19.10 14.30 cloth, skins and hides, machinery, paper (4) 250 kilos • 17.10 12.80 pulp, coal-tar dyes, leathers, hemp and flax, (5) 500 kilos 15.10 11.30 (6) 1,000 kilos • 13.10 9.80 cotton tissues, rails, coal, iron nails, iron pipes (7) 2,500 kilos 9.10 6.80 (8) 5,000 kilos 8.00 6.00 and tubes, soda ash and caustic soda, and (9) 50,000 kilos 5.10 3.80 petroleum. The importation of these items (10) Other 4.70 3.50 Wood: has been heavily reduced in recent months. (1) Cut, sawed, or split, simply— f-1. Pine, fir, and cedar—Cedar less than 20 by 7 cm. by 7 mm Free. Free. f-2. Other— ITALY. (a) Not exceeding 65 mm. in thickness (per cubic meter) Free. 3.10 (6) Other (per cubic meter) Free. 1.80 Recent estimates of the receipts and ex- (2) Other—Match splint Free. Wheat bran (per cubic meter) Free. .30 penditures of the Italian Government for the Rice bran (per cubic meter) Free. .06 fiscal year beginning last July show a deficit of approximately 14,000,000,000 lire. Ordinary s 10 per cent ad valorem. s 5 per cent ad valorem. expenditures are now estimated at 15,468,000,- i° Various rates according to degree of manufacture, 000 lire, extraordinary expenditures, consisting ii 25 per cent ad valorem. of amortization of public debt, pensions, com- Wholesale prices in Tokyo were 2.2 per cent pensation for damages caused by the war, food lower in October than in September and 30 supply, etc., are estimated at 11,222,000,000 per cent lower than in March, when prices lire, making a total expenditure of 26,690,- reached the highest point in the history of the 000,000 lire. Total receipts, on the other hand, country. The index stands at approximately are now estimated at 12,946,000,000, of which the same point as in June, 1919, namely, about 11,446,000,000 will be obtained from ordinary three times the prewar level. sources and 1,500,000,000 from sales of war Ever since last March, when the depression materials, etc. set in, both exports and imports have been The combined ordinary and extraordinary decreasing in value; this has been espe- receipts would thus appear insufficient to cover cially the case with imports. Total exports even the ordinary expenditures, and the total during the 10 months ending October 31 deficit amounts to 13,744,000,000 lire. In amounted to 1,756,000,000 yen, and total order to reduce the deficit, the commission on imports during the same period to 2,123,000,000 finance recommends economy in administra- yen, leaving an adverse balance of 367,000,000 tion, better enforcement of taxes on silk yen. Exports during October were 134,000,000 fabrics, gloves, and wine, the enactment of yen and imports during the same month new taxes on consumption, and, above all, an 108,000,000 yen. The change in prices in increase in the price of bread, so that the sub- practically all countries can account in only a sidy may be decreased. small measure for the decrease in the total During the discussion of the budget in the value of trade. Senate at the session of September 24, a group According to the official review of the 28 of senators made a motion to invite the Gov- important items on Japan's export lists, 19 ernment to solve the problem of the bread registered gains during the nine months of the subsidy with a view to reducing the deficit. year ended by September 30, as compared Premier Giolitti, however, refused to commit

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himself to any measure that might bring about other hand, the proceeds of the sale of wheat an increase in the price of bread and reserved by the Government are estimated at about for the Government the right to propose other 2,580,000,000 lire. The net charge upon the sources of revenue as a means of improving Government will thus be about 5,600,000,000 the fisbal situation; he mentioned, in particular, lire. Should the prices which prevailed at the a possible increase of the tax on wines. end of August be maintained, the charge would The importance of the bread subsidy in be increased by an additional 750,000,000 lire. national finances for the year 1920-21, and the Since August there has been a material de- general situation with regard to the supply of cline in prices of foreign cereals, but at the same grain, has been discussed in various statements time Italian currency has depreciated abroad. given out by the ministry of agriculture and The value of the actual estimates is somewhat the commissioner on food supply during August vitiated, therefore, although the importance of and September. the bread subsidy in Italian finances is not Italy's annual requirement of wheat is esti- changed. mated at about 70 million quintals. Last Contrary to the situation in most other August this year's wheat crop was provisionally countries, with the important exception of estimated by the ministry of agriculture at Germany, prices in Italy are still advancing. 40,065,000 quintals, that of 1919 having been The index number for all commodities regis- about 46,204;000 quintals, and the average tered 665 per cent of the prewar level in October annual crop for the period 1909-1919, of this year. The high level of prices is largely 47,663,000 quintals. Later information shows accounted for by the prices of metals and fuel. that the estimate of the ministry of agriculture Textile prices are also at a very high level. was rather too high. Food prices remain largely controlled, and There will thus need to be imported, in although they have advanced during the past 1920-21, 30 million quintals of wheat. At 225 year the increase has not been at the same lire the quintal (a little under the price of last rate as that of materials for manufacture. August), this will amount to 6,750,000,000 lire. Coincident with this rise in prices the lira has The requisition of 13 million quintals within depreciated excessively in foreign markets. the country, at an average price of 110 lire, will During the first week of November lire were cost an additional 1,430,000,000 lire, the total worth 3.66J-3.47 cents in the New York thus amounting to 8,180,000,000 lire. On the market as compared with a par of 19.3 cents.

Group index numbers—Italy.

Prof. Bachi. [1913=100.]

Cereals Other Minerals Cereals Other Minerals and food- Other Date. Textiles. and Date. and food- Textiles. and goods. meats. stuffs. metals. meats. stuffs. metals.

1913. 100 100 100 100 1920. 1914 102 84 100 96 January 363 396 777 671 418 1915 132 93 113 207 133 February.. 365 399 840 857 443 1916 156 135 184 380 197 March 381 418 962 996 489 1917 215 171 326 596 266 April 395 494 1,064 1,076 535 1918 315 229 475 750 391 May...... 441 499 840 1,088 525 June 445 511 742 917 534 1919. July 434 508 759 903 542 October. 326 366 499 459 341 August 445 510 794 957 540 November 328 371 633 568 351 September. 459 520 837 1,040 541 December. 338 373 658 584 405 October... 446 502 810 1,092 572

AUSTRALIA. partment is to be managed by a board of directors composed of the governor of the bank and three other directors appointed by the Government. Every bank other than The following comment regarding the forma- the Commonwealth Bank is to be compelled to hold "in tion of a note-issue department in the Com- the form of Australian notes an amount not less than 20 monwealth Bank of Australia is taken from a per cent of the deposits which it holds, repayable at call of correspondent's letter from Melbourne, dated less than six months' notice, and 10 per cent of deposits it holds repayable at six months' or longer notice." As September 3, to the London Economist: the word "deposits" is not denned, it would appear to The Commonwealth Government has introduced a bill include deposits in London or elsewhere outside Australia one of the main features of which is to compel the banks as well as those within Australia. The board of the (with the exception of the Commonwealth Bank of Aus- Commonwealth Bank is required to hold not less than tralia) to hold up 2L portion of their deposits in Australian one-fourth of the amount of notes outstanding in gold coin notes, the administration of which is to be transferred and bullion, and is empowered to invest the remainder from the Treasury to a note-issue department of the or any part thereof (a) on deposit with any other bank, Commonwealth Bank of Australia. The note-issue de- or (b) insecurities of the United Kingdom, or of the

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Commonwealth or of a State, or (c) in the ordinary business Ordinary—Continued. Francs. Internal transportation 29,660,000 of the bank. The power conferred upon the Common- Capital and revenue 60,803,385 wealth Bank by clause '(c) is a new feature. Power is Reimbursements 21,207,924 reserved to the Governor-General of the Commonwealth Exceptional: Tax on war profits 300,000,000 to transfer the control of and responsibility for the whole War booty 80,000,000 or part of the Australian note issue from the board of the Sale of army stocks 20,000,000 Commonwealth Bank to the treasurer, whenever in his Received from Germany for occupation expenses 95,000,000 Passports 230,000 (the Governor-General's) opinion an emergency has arisen Extraordinary: which renders it desirable in the public interest so to do, Normal 1,750,000 and to retransfer the note issue to the board of the Com- War sale of objects recovered in Germany 20,000,000 monwealth Bank when the emergency has ceased. Apart Approvisation 1,359,000,000 from the board to be established under this bill, which Office des Regions Devastees 71,500,000 will have to do only with the note issue, the Common- Miscellaneous 752,000 wealth Bank of Australia has no board of directors, but 3,767,345,929 is managed solely by the governor of the bank with the assistance of the deputy governor and the staff. EXPENDITURES. Ordinary: Public debt 529,699,779 BELGIUM. Salaries and civil list 8,583,633 Ministerial budgets 2,249,589,259 2,787,872,671 A summary of the 1920 budget for Belgium, Extraordinary normal: which finally became law on August 16, 1920, Ministries 453,082,525 War expenditures : shows a deficit of 5,589,000,000 francs for Public debt 597,015,000 the year. Ordinary expenditures amount to Ministerial budgets 5,518,122,481 2,788,000,000 francs, extraordinary normal to Total expenditures 9,356,092,677 453,000,000 francs, and extraordinary war ex- Total receipts 3,767,345,929 penditures to 6,115,000,000. Receipts of all Deficit to be covered 5,588,746,748 sorts total 3,767,000,000 francs. In a law of January 27, 1920, the Govern- ment was authorized to borrow 5,000,000,000 EECEIPTS. Ordinary: Francs. francs, of which one-half was obtained in Direct taxes 421,530,000 February and March through the floating of a Customs and excises 315,300,500 Registration 289,500,000 premium loan, and it was reported in September Port and canal tolls 3,120,000 Railroads 600,000,000 that the rest will be raised by the placirg of Posts, telegraphs, and telephones 73,592,120 2,500,000,000 francs in the form of 5 per cent Ostend-Dover service 4,000,000 Antwerp-Tete de Flandre 400,000 treasury notes payable in six months. Group index numbers—United States, Bureau of Labor Statistics.

[1913=100.]

Lumber Farm Food, Cloths and Fuel and Metals and and Chemicals House Miscel- Date. products. etc. clothing. lighting. metal building and drugs. furnishing laneous. products. material. goods.

1913 100 100 100 100 100 100 100 100 100 1914 103 102 98 96 88 98 101 98 1915 106 105 99 92 94 94 109 99 1916 119 124 123 114 142 100 157 115 117 1917 189 178 181 .175 208 124 198 145 153 1918 219 191 240 163 181 152 221 195 192 1919. October 230 211 313 181 161 231 174 264 220 November 240 219 325 179 164 236 176 299 220 December 244 234 335 181 169 253 179 303 220 1920. January.... 246 253 350 184 177 268 189 324 227 February 237 244 356 187 189 300 197 329 227 March 239 246 355 192 192 325 205 329 230 April 246 270 353 213 195 341 212 331 238 May. 244 287 347 235 193 341 215 339 246 June 243 279 335 246 190 337 218 362 247 July 236 268 317 252 191 333 217 362 243 August 222 235 300 267 193 328 216 363 240 September 210 222 278 284 192 318 222 371 239 October 182 204 257 282 184 313 216 371 229

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Group index numbers—Australian Commonwealth—Bureau of Census and Statistics.

[July, 1914=100.]

Textiles, Agri- Groceries Date. Metals and leather, cultural Dairy and Meat. Building Chemicals. coal. etc. products. products. tobacco. materials.

July,1914 100 100 100 100 100 100 100 100 1915 117 93 202 127 110 150 116 149 1916 154 131 113 124 127 155 136 172 1917 213 207 110 116 131 155 194 243 1918 220 232 135 121 138 147 245 315 1919. September 182 225 200 138 149 152 259 263 October 186 243 236 141 152 154 271 272 November 184 254 238 142 151 132 278 267 December 186 259 224 142 156 132 281 266 1920. January 189 273 227 143 156 147 282 268 February 192 283 226 149 161 149 287 272 March 205 281 226 162 160 126 280 April 205 277 234 169 192 160 280 May 214 265 252 177 197 170 307 297 June 214 260 261 187 195 208 307 297 July 211 252 244 188 193 261 307 283 August 209 251 238 189 193 284 312 282 September 211 222 231 209 196 273 295 276

Group index numbers—Canadian Department of Labor.1

[1913=100.]

Fruits Hides, Drugs Grains Animals Other Building Dairy and leather, Metals. Imple- Fuel and and Date. and and products. vege- foods. Textiles. ments. materials, lighting. chemi- fodder. meats. tables. etc. lumber. cals.

1913 100 100 100 100 100 100 100 100 100 100 100 100 1914 114 107 100 99 104 102 105 96 101 100 94 106 1915 136 104 105 93 121 114 110 128 106 97 92 160 1916 142 121 119 130 136 148 143 167 128 100 113 222 1917 206 161 149 233 180 201 168 217 174 118 163 236 1918 231 197 168 214 213 273 169 229 213 147 188 250 1919. October 232 180 204 178 228 290 252 165 225 188 201 198 November.. 240 176 221 240 230 298 252 171 232 194 201 181 December.. 251 182 230 240 232 306 231 181 232 224 209 1920, January 269 195 228 265 245 316 237 191 235 232 212 190 February... 275 195 216 290 251 321 245 199 231 243 215 189 March 280 198 206 295 254 322 222 210 237 268 215 194 April 291 200 196 316 264 366 239 214 237 268 245 201 May 301 207 189 358 275 323 215 213 237 294 257 203 June 302 206 183 338 274 314 186 207 238 295 279 206 July 292 211 194 295 283 305 183 209 242 282 294 218 August 271 204 198 142 277 300 173 209 243 285 218 September.. 254 202 202 190 261 296 169 207 259 273 217 October 229 194 207 177 249 292 156 203 259 265 211 211

i Unimportant groups omitted.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1324 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Group index numbers—Calcutta, India, Department of Statistics. [End of July, 1914=100.]

Build- Manu- Hides Cotton Jute Other Raw manu- Raw Oil Other Date. ing fac- Metals. and manu- tex- Oils. Tea. Sugar. Pulses. Cereals. tured skins. fac- cotton. fac- tiles. jute. seeds. foods. rials. articles. tures. tures.

End of July, 1914. 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 August, 1918 317 83 240 328 240 95 179 1119 1920. January 118 225 226 253 356 214 181 153 159 125 200 96 377 207 167 204 February 118 217 215 233 364 185 I 164 158 155 123 190 92 363 191 158 199 March 127 218 222 211 351 179 150 159 135 118 166 87 321 160 151 192 April 114 201 219 209 357 158 170 161 116 119 163 90 377 159 156 185 May 128 215 248 160 365 135 142 164 123 120 169 90 511 150 157 183 June 131 233 244 116 364 144 147 164 119 83 171 73 482 149 156 180 July 139 235 249 100 364 132 151 168 119 89 169 74 503 159 151 188 August 142 235 257 99 360 139 163 168 115 91 167 72 477 160 154 185 September... 158 237 245 105 347 154 163 164 115 105 179 65 456 170 154 186 October 154 282 245 96 343 142 136 164 132 104 184 64 392 169 155 178

1 Includes pulses.

Group index numbers—Sweden, Svensh Handelstidning.

[1913=100.]

Vegettabla e Animal Raw mate- Building Paper Hides and Date. rials for Coal. Metals. Textiles. Oils. food. food. agriculture. s. material. pulp. leather.

1913-14. 100 100 100 100 100 100 100 100 100 100 19141... 136 101 114 123 109 104 118 103 111 1915.... 151 140 161 177 166 118 116 158 116 120 1916.... 152 182 180 266 272 165 233 229 166 149 1917.... 181 205 198 551 405 215 267 206 247 212 1918 221 419 304 856 398 275 300 195 1919. October 230 360 323 893 213 281 292 223 308 170 November... 230 361 317 840 225 280 316 228 328 204 December... 241 362 319 840 237 294 343 258 350 204 1920. January 328 317 864 248 295 388 258 353 204 February 273 305 319 936 259 371 476 269 380 226 March 270 304 318 960 291 367 682 268 380 275 April 265 284 320 1,008 283 367 767 263 368 275 May 269 283 320 1,069 324 367 788 252 374 275 June 250 273 311 1,252 318 381 778 212 368 303 July 252 277 312 . 1,252 293 388 767 202 336 303 August 271 307 310 1,117 286 388 756 191 328 322 September... 273 312 308 1,085 273 388 753 180 310 340 October 258 306 309 1.026 256 390 740 166 250 340

i Average for six months ending Dec. 31, 1914.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL, RESERVE BULLETIN. 1325

WHOLESALE PRICES IN THE UNITED During October all the commodities included STATES, in the index declined in price except Canadian lumber and Formosa tea which were un- The Federal Reserve Board's all-commodi- changed, and Mexican sisal which advanced ties index of wholesale prices registered 208 during the month. in October, 1920, as compared with 212 in In the case of goods exported from the United October, 1919, and 264 in May, 1920. The 7 States, a 31 per cent decrease since last April Bureau of Labor Statistics index number is indicated by the Board's index. Domestic registered 225 in October, 1920, as compared goods as a whole declined only 20 per cent with 222 in October, 1919, and 272 in May, 1920. during the same period, a fact which seems to Although the two indexes differ as to the present show that the price situation has been largely level of wholesale prices, in both cases they controlled by the foreign-trade situation. Ex- show prices in the autumn of 1920 at about ports and imports have depreciated consider- the same level as in the autumn of 1919. In ably more than commodities which do not other words prices are back again at about the enter into foreign trade. During the past same place as they were before the very ma- month nearly all important commodities which terial increases of last winter and spring had the United States exported decreased in price. taken place. Both indexes show also that Exceptions to this w^ere coal, kerosene, gaso- although prices have receded 15 or 20 per cent line, and lard. from their peak they are still considerably The rate of decline has been approximately higher than at any time during the war. the same in raw materials, producers7 goods, Prices of goods which are imported into the and consumers' goods. United States have declined more than any In making up the index for October quota- other group in the Board's index. A 42 per tions were obtained for all commodities in- cent drop occurred in this group between cluded in the index with the exception of one May and October. This was due to the very grade of raw wool, namely, Sidney and Geelong rapid decline in such commodities as sugar, Merinos, 64's at Boston. No wool of this coffee, rubber, hides, silk, wool, and tin; some grade was received in that market during the of these commodities have decreased in price month. 50 per cent or more during the past six months.

Index numbers of wholesale prices in United States—Federal Reserve Board.

[Average price for 1913=100.1

Goods pro- Raw mate- Producers' Consumers' Date. duced. Imported. Exported. Consumed. rials. goods. goods. All.

1913. Average for the year 100 100 100 100 100 100 100 100 1919. January 197 168 200 195 195 192 196 195 February 191 168 192 190 190 191 188 189 March 193 163 194 191 196 185 188 191 April 198 165 194 196 201 181 197 196 May 204 172 211 201 209 184 202 202 June 204 180 214 202 208 192 202 203 July 214 176 224 211 217 200 211 211 August 221 174 219 218 217 206 224 218 September 215 170 212 212 211 203 216 211 October 215 174 226 211 213 207 214 212 November 222 179 242 217 220 213 219 219 December... 231 203 245 225 229 223 225 226 1920. January 244 212 255 240 245 236 240 242 February 244 216 252 242 242 247 240 242 March ... 250 218 256 247 246 263 241 248 April 265 242 264 263 263 274 257 263 May 266 246 262 264 263 274 261 264 June 260 226 256 257 258 265 255 258 July : 253 208 248 249 249 251- 250 250 August 238 182 229 234 237 235 229 234 September 231 164 211 227 233 225 218 226 October 213 142 181 211 211 209 203 208

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1326 FEDERAL. RESERVE BULLETIN. DECEMBER, 1920.

INDEXNUMBERSOFIVIIOLESAIXPRICES mOEXflUMBERS OF WHOLESALE PRICES 1NTHEUNITED STATES- J9I9J9Z0 IN THE UIUTED STATES-1919,1320. • . i •• &CLWMaterials. JJll Commodities — -—>— - Producers'Goods. (Joods imjwrtecL. • •••————» Cbnsvuners'Goods. — (joodsexjtorted. •— AVERAGE PRICE LEVEL OF 1913 = 100. 300 AVERAGE PRICE LEVEL OF 1913 =100, •300 300 300

230 280 280

260 260 260

240 240 240

220 220 22O

200 200 200

180 (80 180

160 160 160 160

140 140 140 MO

120 120 120

100 100 100

Index numbers of wholesale prices in the United States for principal classes of commodities.

[Bureau of Labor Statistics.] [Average price for 1913=100.]

Raw materials. All com- modities Producers' Consumers' (Bureau of Year and month. goods. goods. Labor Sta- Farm Animal Forest Mineral Total raw tistics index products. products. products. products. materials. number).

July, 1914... 102 106 97 91 99 93 103 100 October, 1914 100 105 96 90 98 95 103 99 October, 1915.. . . 105 105 92 98 101 102 102 102 October, 1916 152 122 96 137 129 149 135 134 October, 1917 228 190 129 153 179 184 178 181 October, 1918 240 211 143 184 199 204 214 205 254 212 234 184 220 211 228 222 January, 1920 291 213 273 190 239 245 259 248 February, 1920 . . . 278 206 315 194 240 246 256 248 288 200 348 197 247 246 263 253 April, 1920 ... . 304 196 367 224 260 263 280 265 179 367 234 260 271 285 272 June, 1920 186 363 245 261 262 279 268 July, 1920 184 359 250 258 251 272 263 August, 1920 259 181 351 258 251 238 250 25Q September, 1920 232 186 344 270 248 224 240 242 October, 1920 191 172 339 265 230 209 224 225

In order to give a more concrete illustration of actual 1920, to October, 1920, compared with like figures for price movements, there are also presented in the following October of previous years. The actual average monthly table monthly actual and relative figures for certain com- prices shown in the table have been abstracted from the modities of a basic character, covering the period January, records of the United States Bureau of Labor Statistics.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 132>7

Average monthly wholesale prices of commodities. [Average price for 1913=100.]

Corn No. 3, Cotton, middling, Wheat, No. 1, Wheat, No. 2, Cattle, steers, Hides, packers, Chicago. New Orleans. northern spring, red winter, good to choice, heavy native Minneapolis. Chicago. Chicago. steers, Chicago. Year and month. Average Average Average Rela- Average Rela- Rela- Average Rela- price per Rela- Average Rela- price per tive price per tive price per tive price per tive 100 tive price per tive bushel. price. pound. price. bushel. price. bushel. price. pounds. price. pound. price.

July, 1914 $0.7044 114 SO.1331 105 SO. 8971 103 $0 8210 83 S9.2188 108 $0 1938 105 October 1914 .7266 118 .0692 54 1.1020 126 1.1086 112 9.4313 111 .2125 116 October, 1915 .6335 103 .1203 95 1.0190 117 1.1325 115 8. 8750 104 .2650 144 .9463 154 .1723 136 1.7569 201 1.6809 170 9.9050 116 . 2663 145 1.9620 319 .2659 209 2.1700 248 2.1700 220 14.6750 173 .3375 184 October, 1918 1.3270 216 .3150 248 2.2155 254 2.2345 227 17.8563 210 .3000 163 October 1919 1.3888 226 .3538 279 2.6250 301 2.2394 227 17.5938 207 .4820 262 1.4750 240 .4035 318 2.9313 336 2.6338 267 15.9375 187 .4000 218 1.4125 229 .3944 311 2.6875 308 2.4900 252 14.9688 176 .4025 219 March, 1920 1.5515 252 .4060 320 2.7550 315 2.5000 253 14.4000 169 3640 198 1.6913 275 .4144 326 3.0063 344 2.7725 281 13.9063 163 .3613 196 May, 1920 1.9825 322 .4038 318 3.0750 352 2.9750 302 12.6000 148 . 3538 192 June, 1920 1.8390 299 .4030 317 2.9000 332 2.8950 294 15.0313 177 .3410 185 1.5388 250 .3950 311 2.8313 324 2.8050 284 15.3813 181 . 2944 160 August, 1920 1.5310 249 .3380 266 2.5500 292 2.4735 251 15.3500 180 .2850 155 1.2938 210 .2706 213 2.4903 285 2.4919 253 15.2500 179 .2840 154 October, 1920 .8778 143 .2088 164 2.1063 241 2.2047 224 14.6875 173 .2550 139

Yellow pine, Hogs, light, Coal, anthracite, Coal, bituminous Wool, Ohio, i-f Hemlock, New flooring, Chicago. York. stove, New York, run of mine, grades, scoured. New York.* tidewater. Cincinnati. Year and month. Average Average Average Rela- Average price per Rela- Average Rela- Rela- Average Rela- price per Rela- 100 tive price per tive price per tive price per tive price per tive short tive pounds. price. pound. price. M feet. price. M feet. price. long ton. price. ton. price.

July, 1914 $8.7563 104 $0.4444 94 $24.5000 101 $42.0000 94 S4.9726 98 $2.2000' 100 October 1914 .. .. 7.9313 94 .4583 97 24.2500 100 42.0000 94 5.1947 103 2.2000 100 October, 1915 8.0125 95 .6000 127 20.5000 . 85 38.0000 85 5.1826 102 2.2000 100 October 1916 9.6550 114 6857 146 23.7500 98 39.0000 87 5.6744 112 3.7500 170 October, 1917 . .... 17.5550 208 L.3571 288 30.5000 126 57.0000 128 6.1426 121 3.3000 150 18 0938 214 L 4365 305 63 0000 141 6 9000 136 4.1000 186 October 1919 .. .. 14.7250 174 L.2634 268 44.0000 182 100.0000 224 8.4135 166 4.5000 205 January, 1920 15.1250 179 L.2364 263 53.0000 219 112.0000 251 8.4291 167 4.1000 186 February 1920 14.9813 177 L.2364 263 57.0000 235 139 0000 312 8.4118 166 4.1000 186 March, 1920 15.5000 183 L.2364 263 57.0000 235 139.0000 312 8.4109 166 4.1000 186 April 1920 15.7125 186 L.2000 255 57.0000 235 160.0000 359 8.4368 167 5.5000 250 May, 1920 14.7550 175 L. 1636 247 57.0000 235 160.0000 359 8.9964 178 6.0000 273 15.3500 182 .noon 212 57.0000 235 160.0000 359 9.3672 185 6.0000 273 July, 1920 15.8875 188 .9091 193 57.0000 235 160.0000 359 9.4580 187 6.0000 273 15.7350 186 .8727 185 57.0000 235 157.0000 352 9.6087 190 6.0000 273 September, 1920 17.0688 202 .8364 ' 178 57.0000 235 157.0000 352 10.4363 206 7.1000 323 October, 1920 14.7875 175 .7273 154 57.0000 235 152.0000 341 10.4732 207 7.1000 323

Coal, Pocabon- Coke, Connells- Copper, ingot, Lead, pig, Petroleum, crude, electrolytic, desilverized, Pennsylvania, Pig iron basic. tas, Norfolk. ville. New York. New York. at wells. Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- price per tive price per tive price per tive price per tive price per tive price per tive long ton. price. short ton. price. pound. price. pound. price. barrel. price. long ton. price.

July 1914 S3.0000 100 $1.8750 77 SO.1340 85 $0.0390 89 SI.7500 71 $13.0000 88 October, 1914 3.0000 100 1.6750 69 .1170 74 . 0375 85 1.4500 59 12.8100 87 October, 1915 2.8500 95 2.0000 82 .1800 114 .0450 102 1.7000 69 15.0000 102 October 1916 4.5000 150 3.1250 128 .2850 181 .0705 160 2.4000 98 19.8800 135 October, 1917 3.9080 130 6.0000 246 .2350 149 .0795 181 3.5000 143 33.0000 224 October, 1918 4.6320 154 6.0000 246 .2600 165 .0805 183 4.0000 163 33.0000 224 October 1919 5.1400 171 4.8250 198 .2172 138 .0643 146 4.2500 173 25.7500 175 January, 1920 4.6320 154 6.0000 246 .1931 123 .0872 198 5.0625 207 37.7500 255 February 1920 4 6320 154 6.0000 246 .1906 121 .0881 200 5.5125 225 42.2500 287 March 1920 . 4,6320 154 6.0000 246 .1858 118 .0923 210 6.1000 249 41.6000 283 April, 1920 6.4800 216 10.5000 430 .1919 122 .0896 204 6.1000 249 42.5000 289 May 1920 6.4800 216 12.0000 492 .1906 121 .0856 195 6.1000 249 43.2500 294 June, 1920 6.4800 216 14.3000 586 .1900 121 .0848 193 6.1000 249 44.0000 299 Julv 1920 6 4800 216 14.3750 589 .1900 121 .0860 195 6.1000 249 45.7500 311 August, 1920 . 6.4800 216 15.5500 637 .1900 121 .0898 204 6.1000 249 48.1000 327 September, 1920.. 7.2800 243 15.3125 628 .1869 119 .0816 185 6.1000 249 48.5000 330 7.2800 243 14.3125 587 .1675 106 .0731 166 6.1000 249 43.7500 298

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1328 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Average monthly wholesale prices of commodities—Continued.

Cotton yarns, Leather, sole, Steel billets, Steel p]ates, Steel rails, Worsted yarns, northern cones, Bessemer, tank, I>itts- open hearth, 2-32's cross- 10/1. hemlock No. 1. Pittsburgh. burgh. Pittsburgh. bred. Year and month. Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- price per tive price per tive price per tive price per tive price per tive price per tive pound. price. pound. price. long ton. price. pound. price. long ton. price. pound. price.

July, 1914 $0 2150 97 $0 3050 108 $19.0000 74 $0.0113 76 $30.0000 100 $0.6500 84 October 1914 .1700 77 20.0000 78 .0115 78 30.0000 100 .6300 81 October, 1915 .1950 88 .3200 113 24.6300 96 .0140 95 30.0000 100 .8500 119 October 1916 .3000 136 .4050 144 46.2500 179 .0350 236 35.0000 117 1.1500 148 October, 1917 .4200 190 .4600 163 49.3750 191 .0325 220 40.0000 133 1 8000 232 October, 1918 .6100 276 .4900 174 47.5000 184 .0325 220 57.0000 190 2.1500 277 October, 1919 6111 276 5700 202 38.5000 149 .0261 176 47.0000 157 1.7500 225 January, 1920 .7271 329 .5600 199 48.0000 186 .0274 185 50.7500 169 2.2500 290 February, 1920 ... .7465 337 .5700 202 55.2500 214 .0350 236 54.5000 182 2.2500 290 March, 1920 .7549 341 .5700 202 60.0000 233 .0365 247 54.5000 182 2.2000 283 April 1920 .7784 352 .5700 202 60.0000 233 .0375 253 54.5000 182 2.2000 283 Mav, 1920.. .7672 347 .5700 202 60.0000 233 .0375 253 54.5000 182 2.0000 258 June, 1920 .7299 330 .5700 202 60.0000 233 .0355 240 54.5000 182 2.0000 258 July, 1920. .7009 317 .5700 202 62.5000 242 .0338 228 54.5000 182 1.7500 225 August 1920 .6310 285 .5500 195 61.0000 237 .0325 220 54.5000 182 1.7500 225 September 1920 .5429 245 .5100 181 58.7500 228 .0325 220 54.5000 182 1.6000 206 October, 1920 .4343 196 .4900 174 55.0000 213 .0309 209 54.5000 182 1.5000 193

Flour, wheat, standard patents Beef, carcass, Hams, smoked, Illuminating oil, Sugar, granu- good native Coffee, Rio, No. 7. (1918, standard Chicago. 150° firetest , lated, steers, Chicago. war), New York. New York. Minneapolis. Year and month.

Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- price per tive price per tive price per tive price per tive price per tive price per tive pound. price. pound. price. barrel. price. pound. price. gallon. price. pound. price.

July, 1914 $0.1350 104 $0.0882 79 $4.5938 100 $0.1769 106 $0.1200 97 $0.0420 98 October 1914 .1438 111 .0656 59 5.7563 126 .1719 103 .1200 97 .0593 139 October, 1915 .1375 106 .0675 61 5.5188 120 .1613 97 .1200 97 .0497 116 October, 1916 ...... 1375 106 .0950 85 9.2800 202 .1935 116 .1200 97 .0708 166 October, 1917 .1900 147 .0850 76 10.5000 229 .2860 172 .1300 105 .0818 192 October, 1918 .2450 189 .1040 93 10.2100 223 .3361 202 .1750 142 .0882 207 October, 1919 ...... 2290 177 .1650 148 12.0313 262 .2900 174 .2200 178 .0882 207 January, 1920 .2320 179 .1628 146 14.4438 315 .2944 177 .2240 182 .1537 360 February, 1920 .2125 164 .1478 133 13.5375 295 .3056 184 .2400 195 .1495 350 March, 1920. . . .2050 158 .1500 135 13.1650 287 .3155 190 .2500 203 .1372 321 April 1920 .2090 161 .1514 136 14.2813 312 .3313 199 .2600 211 .1919 449 May, 1920 .1950 151 .1559 140 15.0313 328 .3556 214 .2600 211 .2247 526 June, 1920 .2225 172 .1498 135 14.1600 309 .3650 220 .2600 211 .2120 497 July, 1920 . . 2550 197 .1306 117 13.6688 298 .3769 227 .2600 211 .1910 447 August, 1920 .2550 197 .0936 84 12.2350 267 .3725 224 .2600 211 .1490 349 September, 1920 .2600 201 .0819 74 12.5938 275 .3634 219 .2750 223 .1426 334 October, 1920 .2520 195 .0759 68 11.2063 244 .3575 215 .2900 235 .1078 252

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DISCOUNT AND INTEREST RATES.

In the following table are presented actual discount and interest rates pre- added from time to time as deemed of interest. vailing during the 30-day period ending November 15, 1920, in the various As was the case during the previous period, no marked tendencies in rates cities in which the several Federal Reserve Banks and their branches are on the whole are exhibited. Changes are scattered, and are found only in a £2 located. A complete description of the several types of paper for which quo- relatively small number of centers. Neither any particular centers or types of oo tations are given will be found in the September, 1918, and October, 1918, paper show significant changes. Present rates continue higher in almost all to FEDERAL RESERVE^ BULLETINS. Quotations for new types of paper will be centers than rates during the same period of 1919.

Discount and interest rates prevailing in various centers during 30-day period ending Nov. 15, 1920.

Prime commercial paper. Ordinary Bankers' acceptances. Collateral loans—stock exchange loans to 60 to 90 days. or other current. Secured by customers Dis- Customers. Open market. Interbank Cattle warehouse secured by trict City. Liberty No. loans. loans. receipts, bonds and etc. certificates 4 to 6 Un- 30 to 90 30 to 90 4to6 Indorsed. 3 to 6 of indebt- days. months. days. months. indorsed. Demand. 3 months. months. edness.

H. L. H. L. C. H. L. C. H. L. C. H. L. C. H. L. C. L. C. H. L. C. T. L. C. H. I -. C. H. L. C. H. L. C. H. L. C. Boston 8 64 7 7 6 64 6i | 8 8 4 4 8 74 8 7f 8 8 7| 8 8 74 74 74 6 New York i 8 6 7 7 6 7 7 6 6| 6 6i-7| 10 4 6-9 8 55 66-7 8 5 6-7 41 Buffalo 7 6 7 6 7 6 6-7 7 7 6 7 6 Philadelphia... 6 6 6 8 7f 8 74 8 54 6 6 5| 66 6 6 6 Cleveland 7 6 7 6 7 7 6 6 8 6 8 5| 7 8 6 7 7 6 6 8"*8""8" 6 Pittsburgh 6 6 6 6 6 8 7f 8 6 6 6 6 6 6 6 6 6 6 6 Cincinnati 7 6 6-64 6 64 74 6i 6| 74 6 64-7 7 6 6 6J 6 8 74 7 7 i 7 74 64 64 6 Richmond 6 6 6" 6 6 6 6 6 6 6 6" 6 6 j 62 6 6 6 6 Baltimore 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Atlanta 8 6 7 8 7 7 7 6 7 7 7 7 7 7 7 8 6 7 8 6 7 8 6 7 8 6 Birmingham... 8 6 7 7 84 8 8 6 6-7 6 7-8 8 6 7-8 8 6 7 8 6 7-8 8 6 7- Jacksonville 8 6 8 7 7 8^7 7 6 7 74 7 7 8 7 74 8 7 74 8 7 8 8 6 w New Orleans — 8 64 74-8 8 6| 74-8 8 64 7-7| 7 74-8 7 74-8 8 7 74-8 8 7 8 7 74-8 8 6 7- Nashville 8 6 7 8 6 7 8 6 8 6 " 7 8 6 8 6 7 7 6 Chicago 7 64 7 7 7 7 7 7 6i 6 7 7 7 7 7 7 7 7 7 7 7 Detroit 7 64 7 64 7 7 6 64 6i 7 7 7 64 7 6 St. Louis 7 64 8 64 7 8 6# 7 6i 6! 64 7 8 6 7 6 Louisville 7 6 6 6 6 8 8 8 8 6 6 6 64 6£ 6 6 6 6 Memphis2 Little Rock 8 64 7 8 7 8 8 7 Minneapolis 74 74 84 ! 74 7 64 6i 61 74 74 74 8 74 8 74 74 7 7 7 10. Kansas City.... 6 7 8 6 7 6 7-8 8 6 7-8 7 7 7 7 8 6 7 Omaha 9 7 7 8 84 7 74 7 8 84 7 8 7 8 74 7 Denver 8 6 6 8 7| 8 7| 6 7 6* 7 8 6 11. Dallas 8 5 8 8 8 8 64 74 8 64 64 8 64 8 64 ?4* El Paso 10 6 8 7 8 7 8 6 8 7 8 10 8 10 8 8 ...... 10 6 874 Houston 8 6 6 7 7 64 7 7 7 12. San Francisco.. 8 6 8 64 6 64 6 61 6 64 7 6 7 6 Portland 8 6 8*74 7| 7 5| 7 61 7 6 7" 8 6 8 6 Seattle 8 6 7 61 7 7 8 8 7 ? Spokane 8 7 6 8 8 6 8 64 7 Salt Lake City. 8 7 81 8 8 8 7 7 8 9 8 8 7 7 Los Angeles 7 6 7 7 5 7 8 5 8 7 1 Rates for demand paper secured by prime bankers' acceptances, high 64, low 5|, customary 5|-6. 2 No report.

00 to CO

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1330 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

PHYSICAL VOLUME OF TRADE. In continuation of tables in the November FEDERAL Receipts of lumber at Chicago and St. Louis showed RESERVE BULLETIN there are presented in the following an increase during October when compared with Septem- tables certain data relative to the physical volume of trade. ber, 1920, but were considerably below the receipts for The January, 1919, issue contains a description of the October, 1919, while shipments showed a decrease both methods employed in the compilation of the data and the when compared with September, 1920, and October, 1919. construction of the accompanying index numbers. Addi- Receipts and shipments at these cities during No- tional material will be presented from time to time as relia- vember showed a decline both when compared ble figures are obtained. with October, 1920, and November, 1919. There In the textile industry there has been an indication of was a considerable decrease in the production of a further decline in activity during October and the southern pine, western pine, and North Carolina pine usual seasonal activity is lacking. Wool consumption both when compared with September, 1920, and October, during October showed an increase when com- 1919. The production of eastern white pine decreased pared with September, but was only about half the during October, but was considerably above the figure amount consumed during October, 1919. The percentage for the same month a year ago. The production of Douglas of idle woolen machinery on the 1st of November, al- fir increased during October, but showed a decided falling though less in some cases, showed a tendency to increase off when compared with October, 1919. California ship- when compared with October 1. The percentage of idle ments of citrus fruits showed a further decline during woolen machinery still continues very much greater than October and were only about one-half the amount shipped during the corresponding period of 1919. Cotton con- during October, 1919. Shipments of deciduous fruits sumption declined considerably, both when compared showed a still further increase during October and were with September, 1920, and October, 1919. The number more than twice the figure for October, 1919. Receipts of cotton spindles active during the month also showed a of raw sugar at the North Atlantic ports remained practi- decrease, both when compared with last month and the cally the same as last month and were considerably less same month a year ago. Imports of raw silk during Octo- than the receipts during the same month a year ago, while ber showed a further large decrease and are still considera- meltings showed a considerable decrease both when bly less than the amount imported during October, compared with last month and the same month a year ago. 1919. Stocks of raw sugar at the close of October at these ports After a continued increase since March, 1920, the pro- showed a slight decrease, but were slightly above the duction of bituminous coal during October showed a slight stocks at the close of October, 1919. decrease and was considerably less than the production Receipts and shipments of live stock at 15 western during October, 1919. On the other hand, the production markets during October showed an increase over Septem- of anthracite coal showed a very large increase during Octo- ber, but were in every case less than the respective figures ber, but was somewhat less than the production during for October, 1919. Stocker and feeder shipments from October, 1919. However, it is to be remembered that the 35 markets showed the usual seasonal increase, but still coal strike occurred during September, 1920. Crude pe- reflected the generally lighter movement during 1920. troleum production, after falling off during September, Receipts of grain and flour at 17 interior markets showed showed a decided increase during October and was consid- a decided falling off during October and were less erably larger than the production figure for October, 1919. than the receipts during the same month a year ago. Pig-iron production showed a slight decline for November Cotton sight receipts showed the seasonal movement, but when compared with the large production during October, were somewhat lighter than during October, 1919. but was very much greater than the production during The railroad net-ton mileage during September showed November, 1919. Steel-ingot production during Novem- a considerable decrease, but was still above the figure for ber fell considerably when compared with October. The September, 1919. The tonnage of vessels cleared during unfilled orders of United States Steel Corporation at the October showed a further decrease when compared with close of November showed a further decrease when com- September, but was considerably above the figure for pared with October, but were well above the figure for October, 1919. November, 1919.

Live-stock movements.

[Bureau of Markets.]

Receipts. Shipments.

Cattle and Horses and Cattle and Horses and Hogs, 60 Sheep, 60 Total, all Hogs, 54 Sheep, 54 Total, all calves, 60 markets. markets. mules, 44 kinds. calves, 54 markets. mules, 44 markets. markets. markets. markets. markets. kinds.

Head. Head. Head. Head. Head. Head. Head. Head. Head. Head. October, 1919 2,989,090 3,144,831 3,605,198 124,496 9,863,615 1,532,877 1,104,302 2,162,886 125,700 4,925,765 1920. January 1,868.723 5,275,412 1,560,051 138,541 8, 842, 727 752,605 1,665,274 669,458 138,145 3,225,482 February.... 1,468,370 3,423,992 1,387,111 108,056 6,387,529 591,691 1,287,169 572,634 110,827 2,562,321 March 1,803,073 3,963,245 1,255,490 82,584 7,104,392 570,323 1,399,485 483,550 87,896 2,541,254 April 1,542,150 3,030,801 1,441,072 48,036 6,062,059 593,362 1,119,205 724,718 47,998 2,485,283 May 1,766,394 4,234,022 1,421,009 40,901 7,462,326 771,865 1,374,902 769,718 40,021 2,955,506 June 1,870,121 3,741,202 1,592,450 32,199 7,235,972 789,953 1,295,936 768,172 33,539 2,887,600 July 1,657,743 2, 837,685 2,000,758 35,668 6,531,854 721,328 1,095,470 1,015,612 37,152 2,869,562 August 1,952,086 2,516,240 2,561,661 73,423 7,103,410 869,849 953,088 1,459,150 69,971 3,352,058 September... 2,279,345 2,435,589 2,826,693 57,468 7,599,095 1,079,170 931,261 1,581,680 60,414 3,652,525 October 2,196,939 2,826,277 2,945,709 38,657 8,007,582 1,159,459 1,064,175 1,932,083 37,994 4,193,711

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Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indian- apolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.]

Cattle and calves. Hogs. Sheep. Horses and mules. Total, all kinds.

Head. Relative. Head. Relative. Head. Relative. Head. Relative. Head. Relative.

October, 1919 2,317,487 230 2,160,079 2,405,511 78,940 171 6,962,017 151 1920. January 1,400,031 139 3,912,449 178 1,035,501 76 90,022 196 6,438,093 139 February.... 1,038,092 114 2,440,154 119 948,116 74 75,488 176 4,531,850 105 March 1,203,499 119 2,910,909 132 900,293 66 56,880 124 5,071,587 110 April 1,040,903 103 2,150,281 98 928,191 68 31,235 68 4,150,610 90 May... 1,203,656 120 3,128,249 142 796,160 58 24,889 54 5,158,954 112 June 1,290,265 128 2,746,390 125 1,006,528 74 21,056 46 5,064,239 110 July 1,188,019 118 2,115,639 96 1,301,458 95 26,257 57 4,631,373 100 August 1,459,565 145 1,818,245 83 1,688,719 124 55,371 120 5,021,900 109 September... 1,736; 009 172 1,597,622 73 1,893,312 139 38,950 85 5,265,893 114 October 1,628,564 162 1,836,748 84 1,865,330 136 24,716 54 5,355,358 116

SHIPMENTS.

October, 1919 1,155,575 284 655,220 135 1,385,774 275 | 80,528 3,277,097 228 1920. January 548,841 135 1,026,763 212 403,382 80 89,990 2,068,976 144 February 427,608 113 814,253 180 334,012 71 78,540 1,654,413 123 March 418,310 103 923,525 191 298,878 59 61,625 1,702,339 119 April 414,937 102 712,087 147 373,381 74 31,348 1,531,783 107 May , 515,062 127 822,907 170 316,002 63 24,037 1.678.0J8 117 June 528,273 130 797,946 165 399,613 79 22,363 1,748,195 122 July 508,199 125 737,923 152 644,557 128 27,728 1,918,407 134 August 640,295 157 627,670 130 899,342 179 52,163 2,219,470 155 Septenber... 819,371 202 540,812 112 1,027,510 204 40,890 2,428,583 169 October 856,327 213 584,720 121 1,192,912 237 24,051 2,668,032 186

Shipments of stockers and feeders from 35 markets.

Cattle and Total, all Cattle and Total, all calves. Hogs. Sheep. kinds. calves. Hogs. Sheep. kinds.

October, 1919... 830,825 106,625 1,384,404 2,321,854 May 291,895 66,144 252,221 610,260 June 270,053 42,156 226,696 538,905 1920. July 217,292 25,826 322,869 565,987 January 346,430 80,719 300,449 727,598 August 279,402 34,479 567,430 881,311 February 237,939 82,981 140,219 461,139 September 474,852 44,483 789,773 1,309,108 March 240,121 104,962 135,246 480,329 October... 573,136 59,155 1,055,370 1,687,661 April 242,996 72,834 267,664 583,494

Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.]

Beef, pickled, Bacon. Hams and shoul- Lard. Pickled pork. Beef, canned. Beef, fresh. and other cured. ders, cured.

Rela- Rela- Rela- Rela- Rela- Pounds. Rela- Pounds. Rela- Pounds. Pounds. Pounds. Pounds. Pounds. tive. tive. tive. tive. tive. tive. tive.

October, 1919.. 1,793,784 271 31,178,216 2,513 3,402,422 127 56,462,312 337 13,090,972 88 41,016,518 93 3,804,290 86

1920. January 1,081,643 163 22,872,223 1,844 1,670,500 63 77,501,002 463 13,905,923 93 38,823,902 88 4,251,187 96 February 735,132 119 13,010,793 1,124 1,631,457 65 75,891,195 488 24,217,706 174 36,644,906 89 3,710,308 March 847,397 128 6,036,166 487 2,290,835 86 75,002,410 448 31,088,859 208 69,429,785 158 3,160,456 April 1,606,737 243 17,687,306 1,426 2,241,460 84 24,356,349 145 15,64.0,236 105 40,758,401 93 2,784,535 S Mav 5,976,493 902 4;304,038 347 3,056,449 114 5,412,388 301 17,896,764 120 55,544,483 126 3,816,157 63 June 6,787,622 1,024 12,526,669 1,010 2,563,702 96 60,730,935 363 21,277,089 143 45,069,517 102 3,962,649 8960 July 5,217,838 788 5,506,812 444 1,973,004 74 31,562,761 188 8,385,089 56 47,061,422 107 2,926,247 66 August 1,231,070 186 343,352 28 2,152,982 81 23,333,156 139 9,360,469 63 31,020,802 71 2,257,511 51 September 244,261 37 1,964,543 158 1,613,657 60 41,371,561 247 8,997,124 60 46,326,353 105 3,279,902 74 October 207,503 31 522,251 42 1,995,039 75 49,838,768 298 8,787,853 59 54,173,979 123 3,549,456 80

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Receipts of grain and four at 17 interior centers. [Chicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo; and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.]

Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.1

Rela- Rela- Rela- Bushels. Rela- Rela- Rela- Rela- Rela- Bushels. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive.

. October, 1919 51,006,164 189 12,493,107 56 22,563,414 112 4,472,397 404 4,369,326 61 94,901,408 122 3,468,787 177 110,510,950 127 1920. January 074,624 93 24,:, :139,094 108|20,925,941 104 4. 378,610 396 3. 298,544 46 77,,816,813 100 2,298,692 117 88,160,927 102 February 115,324 7: 26,051, 855 324 20,575,654 109 3, 263,686 316 2! 470,622 3' 70,477,141 97 2,059,421 113 79,744,536 99 March 007,798 6' 24,306,196 108 19,149,624 95J3, 548,739 3212; 928,440 4164 67,940' , 797 87~~ 1',617,544 83 75,219,745 87 April 260,236 57 11,326,509 50 12,952,593 64i2, 914,553 263 2! 245,881 31 44,699,772 57 888,423 45 48,697,676 56 May 510,063 76 l.2,107,95: 0 54|16,724,389 83i3, 758,507 340 2, 690,076 38 55,790,9855; 5 72 1,913,075 98 64,399,823 74 June 020,640 78 27;",251,16! 6 12114,260,053 7l|3i 177,770 287 2, 721,367 38 68,430,996 88 2!', 113,979 108 80,057,876 92 July 714,399 i, 824,268 93J18,734,180 93!3. 096,026 280 2: 659,921 37 75,028,794 96 2,052,110 105 84,263,289 97 August 039,021 160 9,840,320 44130,728,748 1523; 191,103 288 3! 007,508 42 89,806,700 111151,949,335 9 99198,578,726 114 September... 181,275 1 1 20!0,696,95, ( 5 92 31,031,569 1545, 571,428 503 Q, 630,056 92 110,111,283 141 1,843,954 94!ll8,409, 137 October 403,825 16819,064,508 85 21,235,162 105 4 455,979 403 5 795,028 8195,954,502 123 2^,137,63; 9 109 105,573,878 122

1 Flour reduced to its equivalent in wheat on basis of 4i bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]

Total grain and Wheat. Corn. Oats. Rye. Barley. Total grain. Flour. flour.1

Rela- Rela- Rela-| Rela- Rela- Rela- Bushels. Bushels. Bushels. Bushels. Bushels. Bushels. Barrels. Bushels. Rela- tive. tive. tive. tive. i tive. tive. tive. tive.

! October, 1919 26,168,190 7,111,877 50 16,706,440 1101,426,528 202 3,087,951 79 54,500,986 110 5,975,971 176 81,392,856 126 1920. January , 514,087 11412, 326,051 15,822,099 104 3,685,914 5212, 007,718 51)51,355,; 104 4, 140,314 122 69, 987,282 108 February ,114,215 9811 977,640 13,073,0™ 92 2,113,505 3201, 306,340 36142,584,789 92:3, 156,962 100 56, 791,118 94 March 027,336 71 165,894 79 14,243,957 94 3,062,530 4331, 574,887 40|41,074,604 83|2; 960,175 87 54, 395,392 84 April 058,643 72 371,811 38 8,691,448691440 57 8,811,500 1,2451, 651,509 42)35,584,903 72L 702,132 50 43, 244,497 67 May 720,121 134 939,145 044428,, 8 135 6,977,479 9861, 488,387 38|55,569,420 1122: 877,122 85 68, 516,469 106 June 242,046 131 088,237 42 20,444,288 84 5,428, 886 7671, 905,225 49 50,469,450 102!3: 725,330 9167, 233,435 104 July 002,099 123 100,527 7lll2,805,056 75 4,476,238 632 2, 092,672 54)46,016,965 93i3' 767,678 111 62, 971,516 97 August 934,816 162 260,144 64)11,345,429 84 2,880,003 407 2, 231,851 57 49,120,881 99|3: 605,105 106 65, 343,854 101 September... 700,593 186 284,075 44|12,814,067 84 4,339,057 613 3, 556,180 91 55,570,771 112J3: 187,454 94 69, 914,314 108 ,258,795 170 10'336,378 44|12,69O,866 70 4,742,380 670 4, 529,091 116 56,467,822 1143 758,735 111 73, 382,130 114 October 73J1O,6O1,178

1 Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel. Receipts of grain and flour at nine seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available fcr Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.]

Wheat. Corn. Oats. Rye. Barley. Total grain. Total grain and Flour. flour.1

Rela- Rela- Rela- Rela- Rela- Rela- Bushels. Bushels. Bushels. Bushels. Bushels. Bushels. Barrels. Rela- Rela- tive. tive. tive. tive. tive. tive. tive. Bushels. tive.

1919. October 14,755,827 507,065 4,335,038 911,717,301 1,209 796,839 48 22,112,070 97 2,521,329 24133,458,051 122 1920. January 5,711,009 45 1,491,759 2,663,274 56 2,643,611 1,8611,297,839 7813,807,492 611,561,693 150 20,835,111 76 February 4,898,690 42 1,244,393 2,331,246 53 3,212,668 2,42311,315,291 85 13,002,288 611,102,606 ,964,015 70 March 6,486,745 51 1,203,649 3,646,727 77 4,119,986 2,9001,300,871 7816,757,978 741"' r,752,86. 0 168 24,645,848 90 April 5,441,434 43 1,317,555 1,546,590 33 3,440,350 2,421 685,054 41 "12,430,983 55 843,916 6,228,605 59 May 10,621,723 84 767,332 2,382,271 50 5,117,806 3,602 556,764 34 19,445,896 861,,301,211 125 25,301,346 92 June 13,374,721 106 1,878,334 3,194,897 67 6,506,053 4,5791,191,767 72 26', 145', 772 115 1,486,365 142 32,834,415 120 July 18,710,633 149 3,305,542 3,499,101 74 5,048,019 3,553 2,098,083 126 32,661,378 1441'., 660,849 0,135,198 146 August 28,098,022 223 1,576,842 2,671,365 56 3,407,799 2,398 2,289,791 138 38,043,819 1681,390,077 :4,299,166 162 September... 31,693,246 252 1,456,958 3,069,700 65 4,133,465 2,9091,815,227 109 42,168,596 1861,422,872 136 48,571,520 177 October 29,028,202 230 1,844,753 1,828,515 38 5,436,354 3,826 2,558,276 154 40,696,100 1791,463,830 140 47,283,335 173

1 Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel.

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Stocks of grain at eight seaboard centers at close of month.

[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.]

Wheat. Corn. Oats. Rye. Barley. Total grain.

1919. October 25,322,242 82,240 1,898,271 483,270 3,079,360 30,865,383 1920. January ,485,491 711,501 2,398,639 2,397,156 2,587, 16,580,330 February ,634,682 948,239 1,571,209 2,671,743 2,340, 14,166,660 March..". 280,682 851,287 1,351,457 2,389,321 1,891. 12,764,609 A pril 704,155 967,475 389,958 1,944,350 2,034. 13,040,921 May 781,927 437,521 819,790 1,889,965 1,071, 15,001,123 June 492,819 459,568 901,756 2,035,334 1,193. 13,082,559 July 923,745 744,167 1,323,940 1,275,554 3,187. 18,455,017 August 915,892 1,097,945 1,532,272 777,445 4,052^ 21,375,743 September 517,070 1,146,514 2,398,157 2,414,910 4,110. 25,586,809 October 277,003 1,292,818 2,521,049 1,742,178 3,577, 26,410,498

NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.

Cotton.

[New Orleans Cotton Exchange.]

[Crop years 1911-1913=100.]

Overland move- American spinners' Stocks at ports and Sight receipts. Port receipts. interior towns at ment. takings. close of month.

Rela- Rela- Rela- Rela- Rela- Bales. tive. Bales. tive. Bales. tive. Bales. tive. Bales. tive.

1919-20. August 327,001 26 238,271 26 49,630 47 302,238 1,412,048 120 September. 632,902 50 260,698 28 26,138 25 300 001 66 1,501,805 127 October 1,835.273 146 1,029,331 112 110,202 105 621,784 137 2,340,881 199 November.. 2,445,698 195 1,178,443 128 245,237 233 1,155,324 2,616,383 222 December.. 2,218,773 177 1.069,693 116 242,940 231 1,214,337 2,765,040 235 January 1,583,473 126 '982,030 107 205,233 195 793,453 175 | 2,470,496 210 February... 1,050,964 90 725,515 85 138,084 141 374,093 2,510,482 213 March '796,632 64 621,808 68 108,573 103 270,269 2,276,737 193 April 552,943 44 499,187 54 48,565 46 276,805 2,148,038 182 May 360,607 29 289,809 32 57,661 55 214,678 1,913,407 162 Season total. 12,432,856 83 7,299,667 66 1,674,828 6,365,990 1,461,000 1920-21. August 308,262 25 159,586 17 25.322 251,841 1,365,397 116 Sepi ember. 771,590 62 443,149 48 17,324 254,460 1,607,602 136 October ],463,041 117 971,334 106 79,830 387,780 2,101,839 178

California shipments of citrus and deciduous fruits.

[October, 1920, on, California Fruit News and Bureau of Markets.]

[1911-1913--= 100.]

Total Oranges. Lemons. Total citrus fruits. deciduous fruits.

Carloads. Relative. Carloads. Relative. Carloads. Relative. Carloads.

October, 1919 2,706 Ill 572 141 3,278 115 5,529 1920. January 2,457 100 630 156 3,087 108 123 February 2,683 118 852 225 3,535 133 139 March 4,715 193 651 161 5,366 188 155 April 3,720 152 508 125 4,228 148 22 May 5,048 206 1.353 334 6,401 225 24 J une 3,294 135 1,576 389 4^870 171 1,263 July 2,822 115 664 164 3,486 122 3,179 August 1,707 70 751 185 2,458 7,239 September 1,409 58 464 115 1,873 9,021 October 752 31 925 1,677 59 11,880

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Sugar.

[Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,240 pounds. Monthly average 1911-1913=100.]

Raw stocks at Raw stocks at Receipts. Meltings. close of month. Receipts. Meltings. close of month.

Rela- Rela- Rela- Rela- Rela- Rela- Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive. Tons. tive.

October, 1919.. 233,650 127 216,000 118 63,181 37 1920. May.. 254,616 138 286,000 156 60,381 35 1920. June 301,318 164 319,000 174 42,699 25 January 208,554 113 181,000 99 37,986 22 July 386,328 210 325,000 177 104,027 60 February 316,667 184 269,000 157 85,653 50 August 308,313 168 287,000 156 125,340 73 March 335,532 182 333,000 182 88,185 51 September 109,302 59 164,000 89 70,642 41 April 310,580 169 307,000 167 91,765 53 October 109,335 59 114,000 62 65,977 38

Naval stores. [Data for Savannah/Jacksonville, and Pensacola.] [Compiled from reports of trade organizations at these cities.] [In barrels.]

Spirits of turpentine. Rosin. Spirits of turpentine. Rosin.

Stocks at Stocks at Stocks at Stocks at Receipts. close of Receipts. close of Receipts. close of Receipts. close of month. month. month. month.

October, 1919 19,367 27,389 67,0 186,231 1920. May 23,473 6,174 68,163 78,113 1920. June 33,522 19,654 94,904 108,656 January 8,300 24,910 47,874 165,927 July 39,158 30,906 117,088 135,979 February 3,762 17,900 29,303 140,559 August 33,997 27,963 111,497 144,109 March 1,876 4,819 14,660 103,443 September.. 32,162 44,396 97,797 176,612 April 7,644 3,996 27,029 98,517 October 30,260 49,885 88,766 195,837

Lumber.

[From reports of manufacturers' associations.] [M feet.]

Southern pine. Western pine. Douglas fir. Eastern white pine. North Carolina pine.

Num- Num- Ship- Produc- Ship- Num- Ship- Num- Num- ber of Produc- ber of ber of Produc- Produc- Ship- Produc- Ship- tion. ments. tion. tion. ber of tion. ber of mi Is. mills. mills. mills. mills. tion. ments.

October, 1919 201 421,025 356,124 52 143,252 124 419,108 339,321 10 12,888 IS, 139 26 24,055 22,079 1920. January 202 386,481 404,706 69,895 144.180 128 327,568 344,568 38,007 63,614 24,678 26,283 February 203 383,239 369,047 85,583 147,180 124 332,511 295,934 32,551 59,687 15,534 15,202 March 205 436,944 424,775 130,425 156,211 123 342,948 329,012 43,771 61,620 29,633 29,896 April 205 •438,056 359,461 167,165 133,114 126 359,651 274.597 46,222 61,757 13,659 10,613 May 205 430,271 347,404 183,621 132.181 124 424,687 383,346 12,731 26,323 15,992 18,657 June 204 385,293 287,487 197,461 125,770 127 343,801 271,815 25,771 41,557 14,259 10,481 July 207 385,842 331,273 177,262 103,500 127 242,612 225,666 37,459 49,668 20,756 15,217 August 204 383,540 337,677 171,143 123,344 123 366,433 322,908 46,149 55,991 19,511 14,130 September... 204 376,566 378,195 164,312 98,806 127 299,277 238,965 48,962 45,445 21,887 16,043 October 206 344,427 329,751 146,424 69,936 120 355,614 426.598 40,124 30,928 19,487 14,877

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Receipts and shipments oj lumber at Chicago and St. Louis.

[Chicago Board of Trade and Merchants' Exchange of St. Louis.] [Monthly average, 1911-1913=100.]

Receipts. Shipments. Receipts. Shipments.

M feet. Relative. M feet. Relative, M feet. Relative. M feet. Relative,

October, 1919... 440,216 272,571 107 1920. November, 1919 380,186 235,274 93 May.. 313,447 195,965 77 June 393,738 212,339 84 1920. July 399,615 184,767 73 January * 403,604 87 219,783 87 August 370,352 220,368 87 February 421,692 97 224,286 95 September. 375,456 242,857 96 March 500,230 108 296,047 117 October 398,333 220,116 87 April 236,975 51 131,933 November. 342,971 190,282 75

Coal and coke.

[U. S. Geological Survey.] [Monthly average, 1911-1913=100.]

Bituminous coal, esti- Anthracite coal, esti- mated monthly pro- mated monthly pro- Beehive coke, estimated duction. duction. monthly production.

Short tons. Relative. Short tons. Relative. Short tons. Relative.

October, 1919 56,243,000 S, 459,000 114 1,521,000 58 1920. January 48,689,000 131 7,366,000 100 1,982,000 76 February 40,127,000 116 8,335,000 92 1,731,000 71 March 46,792,000 126 7,240,000 98 2,025,000 77 April 37,939,000 102 6,543,000 88 1,602,167 61 May 39,753,000 107 7,745,000 105 1,689,500 65 June 43,710, 000 118 7,641,000 103 1,710,333 65 July 45,523,000 123 7,785,000 105 1,693,000 65 August 48,389,000 131 7,332,000 99 1, 776,000 68 September 51,093,000 138 5,125,000 69 1, S20,000 70 October 50,744,000 137 7,645,000 103 2,065,000 79

Crude petroleum. [TJ. S. Geological Survey.] [Barrels of 42 gallons each.]

Produced. Produced. Stocks at end Stocks at end of month of month (barrels). (barrels). Barrels. Relative. Barrels. Relative.

October, 1919 33,319,000 174 I 135,461,000 1920. May.. 36,931,000 193 124,689,000 1920. June. 37,295,000 195 126,763,000 January 33,980,000 177 127,164,000 July.. 38,548,000 201 128,168,000 February 33,212,000 186 126,339,000 August I 39,397,000 I 206 129,043,000 March 36,461,000 190 125,597,000 September 37,889,000 198 128,788,000 April 36,283,000 124,991,000 October 39,838,000 208 129,382,000

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Total output oj oil refineries in United States.

[Bureau of Mines.]

Crude oil run Gasoline Kerosene Gas and fuel Lubricating (barrels). (gallons). (gallons). (gallons). (gallons).

September, 1919 32,601,044 339,582,564 199,244,293 683,409,674 70,236,692 1920. January 30,815,160 336,719,157 195,956,392 617,555,156 75,878,635' February 29,208,723 322,588,697 194,523,334 589,684,857 74,243,073 March 33,592,004 367,137,678 191,110,175 686,945,963 81,818,973 April 32,852,040 355,597,451 184,469,017 643,088,785 85,568,064 May 34,578,282 381,079,291 180,877,089 707,198,355 89,252,410 June 34,906,078 415,158,911 173,581,000 689,878,061 94,964,222 July 37,024,052 423,419,770 172,213,511 751,193,898 92,369,504 39,757,770 444,141,422 189,010,459 834,322,503 91,078,569 August 40,549,316 453,881,096 199,140,024 836,700,086 86,230,371 September

STOCKS AT CLOSE OF MONTH.

Sept. 30, 1919 13,925,441 371,125,419 311,843,057 862,135,385 158,967,070 • 1920. Jan. 31 13, 200,727 515,934,364 327,548,646 652,080,901 141,690,177 Feb. 29 13, 500,599 562,996,489 330,120,942 590,322,125 132,759,244 Mar. 31 14, 346,458 626,393,046 334,617,117 i 580,182,858 130,630,597 Apr. 30 15, 145,691 643,552,644 376,358,123 590,687,009 140,355,972 May 31 15, 331,375 577,671,795 419,077,605 618,939,135 135,882,485 June 30 16, 172,280 504,055,601 421,343,353 641,968,363 133,212,551 July 31 17, 086,253 413,279,319 410,853,047 655,152,293 131,866,455 Aug. 31 17, 960,558 323,239,991 378,548,791 i 708,608,472 130,797,810 Sept. 30 18, 830,079 288,195,394 379,300,705 ! 771,126,965 130,449,829

Iron and steel.

[Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron ar.d Steel Institute. [Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913=100.]

Iron-ore shipments Steel-ingot produc- Unfilled orders U.S. from the upper Pig-iron production. Steel Corporation Lakes. at close of month.

Gross tons. Relative. Gross tons.! Relative. Gross tons. Relative. Gi oss tons. Relative.

October, 1919.... 6,201,883 102 1,863,558 80 6,472,668 123 November, 1919.. 3,152,319 52 2,392,350 103 7,128,330 -135 1920. January 3,015,181 130 2,968,102 123 9,285,441 176 February... 2,978,879 138 2,865,124 127 9,502,081 180 March 3,375,907 146 3,299,049 137 9,892,075 188 April 230,854 2,739,797 118 2,638,305 109 10,359,747 197 May 6,976,085 115 2,985,682 129 2,883,164 119 10,940,466 208 June 9,233,566 152 3,043,540 131 2,980,690 10,978,817 208 July 9,638,606 159 3,067,043 132 2,802,818 116 11,118,468 211 August 9,270,763 153 3,147,402 136 3,000,432 124 10,805,038 205 September.. 8,923,482 147 3,129,323 135 2,999,551 124 10,374,804 197 October 8,848,986 146 3,292,597 142 3,015,982 125 9,836,852 187 November.. 2,934,908 127 2,638,670 109 9,021,481 171

Imports oj pig tin.

[Department of Commerce.] [Monthly average, 1911-1913=100.]

Pounds. Relative. Pounds. Relative.

October, 1919 16,210,512 178 1920. May 9,102,341 100 1920. June 11,232,325 124 January 8,772,953 97 July 17,584,167 193 February 13,925,843 164 August 11,195,937 123 March. 11,980,019 132 September 9,596,819 106 April 10,345,130 114 October 6,741,331 74

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Raw stocks of hides and skins. [Bureau of Markets; July, 1920, on, Bureau of the Cens s.] [In pieces.]

Cattle Sheep and hides. Calfskins. Kipskins. Goat. Kid. Cabretta. Iamb.

September 30,1919. 6,158,289 2,055,084 947,546 16,749,664 823,740 2,736,802 8,661,215 1920. Jan. 31 6,773,360 920,184 1,036,372 13,474,529 927,436 1,893,614 8,902,067 Feb. 29 6,559,337 859,697 1,141,620 16,481,328 665,524 2,197,683 9,460,914 Mar. 31 6,558,300 930,218 966,850 15,968,660 468,188 2,047,519 9,227,252 Apr. 30 6,072,895 281,370 834,711 14,666,590 156,871 1,947,499 8,911,681 May 31 5,849,375 724,056 924,042 14,131,330 791,150 2,253,785 9,004,621 June 30 6,212,946 107,393 915,499 14,562,713 60,999 2,070,471 10,993,22K September 30. 5,093,824 526,391 037,417 113,408,277 2,197,149 11,235,417

1 Figures for kid skins included. Textiles. [Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.] [Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100.]

Percentage of idle woolen machinery on first of month to total reported. Cotton consump- Imports of raw silk. tion. Cotton spindles Wool con- Looms. Spinning spindles. active sumption during (pounds). month. Sets of Wider Under cards. Combs. than 50- 50-inch Pounds. Bales. Relative. inch reed reed Woolen. Worsted. Relative. space. space.

October, 1919... 556,041 124 34,344,095 60,018,415 16.0 20.7 8.2 5.9 7.7 7.2 3,955,845 193 1920. January 591,725 132 34,739,071 63,059,862 14.5 18.5 8.8 7.2 9.1 10.2 4,855,989 237 February 516,594 123 34,668,643 55,247,652 12.2 17.6 7.6 6.9 7.1 7.9 3,696,121 194 March 575,704 128 34,667,747 58,344,602 14.9 19.8 9.8 7.0 10.3 11.7 2,491,651 122 April 567,839 126 34,346,737 57,887,832 13.1 16.9 9.6 7.1 9.5 7.0 2,227,857 109 May 541,080 120 34,066,236 50,649,381 15.2 18.2 10.6 6.7 11.5 7.0 2,505,798 122 June 555,521 124 34,503,754 40,679,920 26.8 22.4 21.1 15.9 23.1 14.2 3,221,177 157 July 525,405 117 34,666,842 32,372,064 42.5 32.3 38.0 35.0 42.0 32.7 2,581,920 126 August 483,193 107 34,471,515 32,849,956 49.5 29.9 39.6 33.4 45.5 37.6 2,690,690 132 September 457,647 102 34,040,806 30,928,337 51.8 34.8 39.6 37.3 44.6 38.0 1,968,801 96 October 399,837 89 33,669,804 33,703,523 49.0 34.9 38.3 26.3 43.2 26.0 1,531,850 75 November 46.9 37.7 39.5 32.8 42.8 34.8

Production oj wood pulp and paper. [Federal Trade Commission.] [Net tons.j

Wood News- Paper Wood News- Paper Wrap- Book. Wrap- Fine. Book. Fine. pulp. print. board. ping. pulp. print. board. ping.

October, 1919 308,710 125,216 89,440 202,524 67,110 34,808 1920. May 363 815 129,230 92,856 213, 475 70,511 31,575 1920. June 337; 115 130,380 94,957 215, 131 72,987 3-1,121 January 302,541 129.663 96,419 211,934 70,109 32,S86 July 312, 334 J29,853 95,526 218, 771 73,487 34,078 February 266,191 114,235 S5,532 176,855 61,574 29,202 August 305, 965 128,818 94, 424 215, 633 75,226 33,122 March 327,143 127,847 95,851 207,863 68,403 33,671 September 293, 913 121,00.5 94,142 218, 743 70,917 34,207 April 350,194 128,269 95,251 199,395 75,347 33,493 October 319, 877 124,818 93,849 196, 604 73,100 34,526

Sale oj revenue stamps for manufactures oj tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.]

Cigars. Cigarettes. Cigars. Cigarettes. Manu- Manu- factured factured Large. Small. Small. tobacco. Large. Small. Small. tobacco.

Number. Number. Number. Pounds. 1920. Number. Number. Number. Pounds. October, 1919 677,622,154 64,170,793 5,028,875,337 39,335,546 May 676,227,828 59,943,280 3,953,345,380 34,875,839 June 708,112,284 52,735,587 4,088,834,583 34,231,058 1920. July 678,751,956 51,766,100 3,053,336,563 30,988,646 January 663,634,243 58,837,900 4,528,760,833 33,608,313 August 672,020,289 48,171,240 3,569,397,443 32,138,941 February 593,832,200 43,358,500 3,536,117,847 31,531,460 September 678,640,116 50,175,580 3,557,482,503 32,094,569 March 753,239,958 55,052,100 4,373,778,917 38,422,481 October 704,799,089 60,882,760 3,840,334,806 27,123,774 April , 663,577,579 56,548,853 3,756,989,397 34,327,970

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Output of locomotives and cars. \Locomotives, United State? Railroad Administration; February on, reports from individual producers; cars, Railway Car Manufacturers' Association.]

Locomotives. Output of cars. Locomotives. Output of cars.

Domes- Foreign Domes- Foreign tic com- Domes- Foreign. Total. tic com- Domes- Foreign. Total. shipped. pleted. tic. shipped. pleted. tic.

Number. Number. Number. Number. Number. 1920. Number. Number. Number. Number. Number. October, 1919. 89 55 10,445 3,715 14,160 May 83 112 2,792 1,402 4,194 June 99 72 2,7S0 731 3,511 1920. Julv 122 54 2.731 434 3,165 January 48 22 4,650 1,914 6,56! 1 August 114 125 3,409 1,210 4,619 February 43 85 3, 960 1,066 5,026 ! September 126 69 3,955 1.203 5,058 March. ... 45 59 3,053 2,040 5, 093 ! October 198 106 6,309 684 6,993 April 96 2,313 1,934 4,247

Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.

[Monthly average, 1911-1913=100.]

Gross Gross Number. tonnage. Relative. Number. tonnage. Relative.

October, 1919 210 357,519 1,479 1920. May 184 185,145 776 1920. June 198 267,076 1,105 January 115 253,680 1,050 July 173 217,239 899 February 140 267,231 1,185 August 178 259,210 1,073 March 170 279,709 1,157 September 135 261,962 1,084 April 164 251,442 1,040 October 120 227,162 940

Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average, 1911-1913=100.]

Net tonnage. Per- Net tonnage. Per cent- cent- Rela-j age Rela- Rela- age Rela- tive. I Ameri- tive. tive. Ameri- tive. American. Foreign. Total. can to American. Foreign. Total. can to total. total.

October, 1919... 2,645,778 2,073,560 4,719,338 121 56.1 1920. May 2,729,790 % 436,247 5,166,037 133 52.8 209 1920. June 3,199,274 3,141,913 6,341,187 163 50.5 200 January 1,933,385 1,949,798 3,883,183 100 49.8 197 July 3,302,538 3,616,052 6,918,590 178 47.7 189 February 1,702,407 1,628,212 3,330,619 92 51.1 202 August 3,616,267 3,929,602 7,545,869 194 47.9 190 March 2,040,031 2,040,538 4,080,569 105 50.0 198 September... 3,421,531 3,513,599 6,935,130 178 49.3 195 April 2,504,038 1,960,634 4,464,672 115 56.1 222 October 3,334,961 3,199,742 6,534,703 168 51.0 202

Net ton-miles, revenue and nonrevenue. [United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.]

September, 1919 38,860,311,000 1920. May i 37,884,967,000 1920. June 38,179,565,000 January 34,769,722,000 July 40,435,508,000 February ; 32,758,789,000 August 42,706,835,000 March 37,990,993,000 September 40,999,843,000 April 28,490,595,000

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Commerce of canals at Sault Ste. Marie.

[Monthly average, May-November, 1911-1913=100.] EASTBOUND.

Grain other than Flour. Iron ore. wheat. Wheat Total

Rela- Rela- Rela- Rela- Bushels. Bushels. Barrels. Rela- tive. tive. tive. Short tons. tive. Short tons. tive.

October, 1919 4 351 059 49 22 252 196 116 1 544 510 133 6 059 450 102 7 063 120 101 November, 1919 8,654,903 97 17,388,391 90 1,402,260 121 3,299,532 56 4,201,881 60 1920. April 6 008 000 4 274 611 162 630 454 726 Mav 11,904 942 134 13 497 995 70 658 910 57 6 683,820 113 7,483,836 107 June. . 3,076,986 35 5,976', 125 31 1,082,521 93 8,707,350 146 9,153,884 131 Julv 3,133,419 35 7, 838,470 41 1,171,250 101 9,235,086 156 9,749,701 139 August 2,315,909 26 7,512,510 39 1,038,221 89 8,784,821 148 9,278,071 132 September . 3,102,770 35 11,624,488 60 621,010 53 8,721,412 147 9,290,129 133 October 7,198,311 81 28 470 696 148 1,142,991 98 8,656,823 146 9,876,641 141 November 9,921,968 111 37,236,311 193 1/317,800 114 5,553,173 94 7,065,488 101

WESTBOUND.

Hard coal. Soft coal. Total. Total freight.

Rela- Rela- Rela- Short tons. Short tons. Short tons. Rela- Short tons. tive. tive. tive. tive.

October, 1919 . . 498 505 161 1,848,511 96 2,650,799 107 9,713,919 102 November, 1919 466,135 150 307,241 16 932,615 37 5,134,496 54 1920. April 10,000 50,831 82,483 537,209 Mav... 202 000 65 531,375 28 937,374 38 8,421,210 89 June 271,020 87 966,382 50 1,493,935 60 10,647,819 112 July. 300 150 97 1,294,162 67 1,827,978 73 11,577,679 122 August 341,690 110 2,533,614 132 3,147,219 127 12,425,290 131 September 177 123 57 2,040 774 106 2,458,002 99 11,748,131 October... . 376,388 121 2,493,907 130 3,123,658 126 13,000,299 137 November 329,845 106 1,869,723 97 2,354,092 95 9,419,580 99

GOLD SETTLEMENT FUND. millions of new certificates of indebtedness, also semiannual interest payments on Septem- Seasonal shifting of funds for crop-moving ber 15, October 15, and November 15 on the purposes, accompanied by an increased volume third, fourth, and second Liberty loans aggre- of rediscount transactions between Federal gating approximately 290 millions. The excep- Reserve Banks, also the increased volume of tionally heavy transfers during the week ending fiscal operations of the Government which were on September 23 were composed in part of the particularly heavy during September, are re- transfers of $140,000,000 to the Federal Re- flected in record totals for both clearings and serve Bank of New York for Government ac- transfers through the gold settlement fund count. Sales on September 9 of $45,000,000 of during the three-month period ending Novem- certificates of indebtedness by the Federal Re- ber 18, 1920. Total clearings through the fund serve Bank of New York to the Boston and aggregated $21,821,566,124, compared with Cleveland banks and the increasing use of the $21,035,992,496 shown for the preceding three- clearing and collection facilities of the Federal month period, while transfers increased from Reserve Banks also account in some measure $1,688,008,156 to $2,487,123,679. Government for the increase in transfers and in clearings operations, affecting both transfers and clear- through the fund during the period under ings, included the collection of about 716 millions review. of income and excess profits taxes on September The Federal Reserve Bank of New York 15, the redemption during the three-month again shows a large net loss of gold through the period of nearly 900 millions of maturing loan fund, amounting during the period to $132,- d tax certificates and the issuance of over 800 557,621, its net gain through transfers of

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$314,099,077 being more than offset by a net Amounts of clearings and transfers through the gold settlement loss through settlements of $446,656,697. fund, by Federal Reserve Banks, from Aug. 20, 1920, to Large net losses are also shown for the Boston Nov. 18, 1920, both inclusive. and Chicago banks, while the Federal Keserve Banks of Cleveland and San Francisco show Total clearings. Transfers. particularly heavy gains, the gain by the latter Settlements of— bank being due largely to the transfer of gold to Aug. 20-26 $1,617. 170,660.73 $139,172,021 50 meet withdrawals for export to the Far East. Aug. 27-Sept. 2.. 1,564j 298,615.00 205,860,624.68 Sept. 3-9 1,371, 559,276.44 236,973,073.86 During the three months under review the Sept. 10-16 1,773, 084,253.26 133;588,899.27 Sept. 17-23 751,667.67 324,162,871.32 banks deposited $192,145,835, net, of gold in Sept. 24-30 035,125. 67 174,048,789.47 the fund and transferred $153,778,000 to the Oct. 1-7 ,712, 016,971.41 178,958,431.61 Oct. 8-14 ,574. 179,059.27 126, 682,837.83 Federal Reserve Agents' fund. As a result Oct. 15-21 2 076' 163,301.65 195,392,529.90 7 Oct. 22-28 1,798! 435,287.23 191,888,532.04 the balance in the banks fund increased by Oct. 29-Nov. 4.. 1,503! 858,465.19 213,869,197. 63 $38,367,835, from $366,775,601 to $405,143,436. Nov. 5-11 1,503! 182,679. 86 213,370,408.98 The balance in the agents' fund increased from Nov. 12-18 1,743!,830,760.86 156,155,460.68 Total 21,821,566,124.24 2,487,123,678.77 $792,184,860 to $807,262,893, net transfers Previously reported for 1920 54,069,502,103.79 4,126,662,247.70 from the banks amounting to $153,778,000, Total since Jan. 1, 1920 75,891,068,228.03 6,613,785,926.47 Total for 1919 66,053,394,214.47 7,930,857,773.95 being largely offset by net gold withdrawals Total for 1918 45,439,487,000.00 4,812,105,000.00 aggregating $138,699,968. At the close of the Total for 1917 24,319,200,000.00 2,835,504,000.00 period under review, November 18, 1920, the aggregate balance in the two funds stood at Clearings and transfers.

$1,212,406,328, an increase of $53,445,868 over Total for 1920 to date $82,504,854,154.50 the combined balance shown three months Total for 1919 73,984,251,988.42 Total for 1918 50,251,592,000.00 earlier. Total for 1917 27,154,704,000.00 Total for 1916 5,533,966,000.00 Following are figures showing operations Total for 1915 1,052,649,000.00 through the two funds during the period from Total clearings and transfers from May 20,1915, August 20 to November 18, 1920, inclusive. to Nov. 18, 1920 240,482,017,142.92

Changes in ownership of gold.

Total changes from May 21,1915, Total to Aug. 20,1920. From Aug. 20,1920, to Nov. 18,1920, inclusive. to Nov. 19, 1920.

Federal Reserve Balance to Bank. credit Aug. 19. 1920, plus Balance Nov. Decrease. Increase. net deposits of 18,1920. Decrease. Increase. Decrease. Increase. gold since that date.

Boston $67,901,539.05 $31,560,212.12 $18,732,842.95 $12,827,369.17 $55,074,169.88 New York $903,205,055.67 211,760,607.70 79,202,986. 51 132,557,621.19 $1,035,762,676.86 Philadelphia 80,835,442. 59 35,809,032. 09 44,593,484. 55 $8,'784," 452'46' "*89,"6i9,"895.'65 Cleveland 217,249,219.11 27,767,900.67 77,884,846.45 50,116,945.78 267,366,164.89 Richmond 11,948,511.93 12,951,912.96 14,232,433.78 1,280,520.82 13,229,032.75 Atlanta 39,666,443.64 14,230,401.83 3,5*80,444. 08 7,810,845.91 47,477,289.55 Chicago 35,700,078.39 85,565,027.02 58,795,286. 27 "26," 769,'740* 75" 8,930,337.64 St. Louis 64,574,511.71 * 827, 525. 40 13,567,991.70 14,395,517.10 78,970,028.81 Minneapolis 11,132,158.18 6,161,321.94 9,169,679. 54 3,008,357.60 8,"i23,"806.*58" Kansas City *29,*i66,'658.*5i" 23,010,564.32 25,496,307.95 2,485,743. 63 31,646,402.14 Dallas.. . 24,017,252.42 4,780,886. 34 4,123,500.44 '"'657,'385." 90" 23,359,866. 52 San Francisco 343,283,556.50 129,166,102.46 55,763,631.25 84,929,733.71 428,213,290.21

Total 914,337,213.85 914,337,213.85 405,143,435.47 405,143,435.47 172,812,117.01 172,812,117.01 1,043,886,477.44 1,043,886,477.44

1 Excess of withdrawals over balance Aug. 19,1920, and deposits since that date.

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Combined statement from Aug. 20, 1920, to Nov. 18, 1920, both inclusive.

GOLD SETTLEMENT FUND.

Aggregate Transfers. Balance last withdrawals Aggregate Federal Reserve Bank of— statement, Gold Gold deposits. and transfers deposits and Aug. 19, 1920. withdrawals. to agent's transfers from fund. agent's fund. Debits. Credits.

Boston $28,564,594.62 $2,004 382.50 $10,000,000.00 $67,004,382.50 $70,000,000.00 $577,480,012.69 $388,291,931.38 New York 35,349;353.45 24,189,945.75 172,601,200.00 54,189,945-75 230,601',200.00 189,838!566.96 503,937,643.46 Philadelphia.. 46,462,549.59 2,691,217. 50 32,037,700-00 55,691,217-50 45,037,700.00 156,913;288. 49 102,854,347.31 Cleveland 65,972,959.32 19,867,188. 65 3,662,130-00 41,867,188.65 3,662,130.00 644,516,490- 24 358,686,270.42 Richmond 18,798,108.05 1,927,194. 58 11,581,000.00 17,427,195- 09 11,581,000.00 251,277,225.36 272,000,000.00 Atlanta 4,600,948-57 787,300. 40 24,155,950.00 34,987,300.40 26,155,950.00 42,559,239.28 149,364,624.43 Chicago 81,232,325.52 1,901,298.50 26,234,000-00 21,901,298.50 26,234!000.00 115,049,712.33 60,000,745- 67 St. Louis 8,124,694.10 9,554,019. 50 6,001,800.00 17,854,019.50 8,90i;800-00 38,960,318. 78 128,498,966.50 Minneapolis... 5,991,071.94 2,446!750.00 867,000.00 2,896,750,00 3,067 000.00 70,244,747.40 111,000,000.00 Kansas City.. 25,678,029.93 1,882!710. 61 7,215,245 00 9,882,710.61 7,215! 245.00 176,900!951.15 184.233,335.20 Dallas 5,109,786.34 2,114;440.00 8,785,540.00 9,114,440 00 8,785'540.00 205,676!042.64 210,564,601.90 San Francisco. 40,891,180.04 73,129; !.5O 31,500,000.00 118,129,282.50 48,072;000.00 17,707;083- 45 17,691,212.50 Total... 366,775,601.47 142,495,730.49 334,641,565-00 450,945,731.00 489,313,565.00 2,487,123,678.77 2,487,123,678-77

Summary of changes in owner Settlements from Aug. 20,1920, to Nov. 18,1920, both inclusive. Balance in ship of gold by banks throug- Federal Reserve fund at close transfers and settlements. Bank of— of business Nov. 18,1920. Net debits. Total debits. Total credits. Net credits. Decrease. Increase.

Boston $1,657, 345,517.24 $1,833,706,229.38 $176,360,712.14 842.95 $12,827,369.17 New York $446,656,697.6 6,044 866,168.99 5,598,209,471.30 986.51 132,557,621.19 Philadelphia... 2,066 652,647.99 2,129;496,041.63 62,843,393-64 484.55 $8,784,452.46 Cleveland l,87i; 811,751.05 2,207.758,916.65 335,947,165-60 846.45 50,116,945.78 Richmond 19,442,253.82 1,752, 474,988.02 1,733;032,734.20 433.78 1,280,520.82 Atlanta 98,994,539.24 773, 216,033-02 674,221,493.78 444.08 7,810,845.91 Chicago 2, 180,214.59 2,834,459,440.50 28,279,225-91 .27 26,769,740.75 St. Louis 75,143,130.62 1,607;908,811.90 1,532,765,681. 28 991.70 14,395,517.10 Minneapolis 37,746,895.00 506, 093,231.60 468.346,336.60 679. 54 3,008,357-60 Kansas City... 4,846,640.42 1,222, 629, 413.17 1,217;782,772.75 307.95 2,485,743-63 Dallas 5,545,945.16 790, 602,572.23 785,056,627.07 500.44 ""657,'385." 90' San Francisco.. 721, 784,774.44 806! 730,379.10 84,945,604-66 631.25 84,929,733.71 Total. 688,376,101.95 21,821,566,124.24 21,821,566,124.24 :, 376,101.95 405,143,435.47 172,812,117-01 172,812,117.01

FEDERAL RESERVE AGENTS' FUND.

Balance last Withdrawals Deposits Balance at Federal Reserve Agent Gold Gold deposits. for transfers through Total Total deposits. close of at— statement, withdrawals. transfers withdrawals. business Aug. 19,1920. to bank. from bank. Nov. 18,1920.

Boston $112,000,000 $27,000,000 $15,000,000.00 $60,000,000 $65,000, 000.00 $87,000,000 $80,000,000.00 $105,000,000 New York.... 63,000,000 10,000,000 58,000,000 30,000, 000.00 68,000,000 30,000,000.00 25,000,000 Philadelphia.. 91,389,260 30.000,000 13,000,000 53,000, 000.00 43,000,000 53,000,000.00 101,389,260 Cleveland 100,000,000 12,000,000 22,000, 000.00 12,000,000 22,000,000.00 110,000,000 Richmond 42,500,000 24,000,000 11,500,032.49 15,500, 000.51 24,000,000 27,000,033.00 45,500,033 Atlanta 43,500,000 18,700,000 2,000,000 34,200, 000.00 20,700,000 34,200,000.00 57,000,000 Chicago 162,144,500 41,000,000 35,000,000.00 20,000! 000.00 41,000,000 55,000,000.00 176,144,500 St. Louis 37,530,600 24,000,000 21,500,000.00 2,900,000 000.00 26,900,000 29,800,000.00 40,430,600 Minneapolis.. 15,950,000 3,000,000 2,200,000 450, 000.00 5,200,000 450,000.00 11,200,000 Kansas City.. 35,360,000 14,000,000 7,000,000.00 8,000, 000.00 14,000,000 15,000,000.00 36,360,000 Dallas 10,734,000 12,000,000 8,000,000.00 7,000! 000.00 12,000,000 15,000,000.00 13,734,000 San Francisco 78,076,500 21,000,000 16,572,000 45,000! 000.00 37,572,000 45,000,000.00 85,504,500 Total... 792,184,860 236,700,000 98,000,032.49 154,672,000 308,450,000. 51 391,372,000 406,450,033.00 807,262,893

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BANK DEBITS DURING OCTOBER-NOVEMBER. Aggregate debits to individual account; as millions, this increase in New York apparently reported by 156 important clearing-house reflecting chiefly the larger volume of stock associations, fluctuated between 8,719 millions exchange transactions during recent weeks. for the week ending November 3 and 9,983 A comparison with average figures for the millions for the week ending November 15, five corresponding weeks in 1919 shows a which saw heavy financial operations by the reduction for New York City banks of about Government in connection with interest pay- 1,042 millions, or from 5,772 to 4,730 millions, ments on the fourth Liberty loan and the while for the other reporting centers this year's issuance and redemption of Treasury certifi- average of 4,634 millions was only slightly cates. The average of debits for the five below the average of 4,673 reported for the weeks ending November 24 was 9,364 millions five-week period of the preceding year. The compared with an average of 9,270 millions for lower figures for New York City banks are due the preceding four weeks. The larger average apparently, to a large extent, to the operation volume of debits is more than accounted for of the Stock Exchange Clearing House which by an increase in the average for New York greatly reduced the volume of checks issued City clearing-house banks from 4,616 to 4,730 in payment for purchases of securities.

Debits to individual accounts at clearing-house banks.

SUMMARY BY FEDERAL RESERVE DISTRICTS. [In thousands of dollars.]

Num- 1920 1919 ber of Week ending— Week ending— Federal Reserve centers district. in- cluded. Oct. 27. Nov. 3. Nov. 10. Nov. 17. Nov. 24. Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 26.

Boston 485,116 499,568 454,290 512,825 437,057 468,649 535,952 473,292 600,130 508,324 New York 4,768,617 4,458,256 5,066,558 5,236,714 4,878,262 5,847,376 5,571,802 6,460,158 6,174,690 5,496,580 Philadelphia.. 445,228 405,990 452,959 449,704 439,987 423,328 374,314 455,692 449,653 412,569 Cleveland 646,322 584,191 593,699 628,331 604,318 533,327 517,268 560,503 554,189 551,799 Richmond 179,247 183,129 190,478 194,181 174,283 185,968 192,653 206,209 223,047 194,969 Atlanta 233,115 225,258 238,157 237,041 223,719 268,223 277,775 257,054 298,236 265,108 Chicago 1,121,526 1,007,391 1,116,134 1,175,663 979,128 1,019,713 1,108,759 1,070,763 1,207,125 1,164,155 St. Louis 217,919 204,431 219,061 234,073 206,483 219,983 239,161 244,640 277,075 240,438 Minneapolis... 191,756 171,229 220,219 209,780 189,823 178,735 192,272 175,998 187,120 179,535 Kansas City... 319,031 297,134 313,175 333,021 322,973 307,840 309,599 298,226 351,607 338,504 Dallas 179,318 168,715 173,015 163,257 161,771 174,242 168,585 177,112 200,590 188,134 San Francisco. 556,285 513,314 577,448 607,941 542,619 523,037 537,344 444,443 610,286 550,923 Total.... 156 9,343,480 8,718,606 9,615,193 9,982,531 9,160,423 10,150,421 10,025,484 10,824,090 11,133,748 10,091,038

NOTE.—Figures for the following centers, while shown in the body of statement, are not included in the summary, complete data for these centers not being available each week under review: Manchester, N. H.; Washington, D. C; Huntington, W. Va.; Moline, 111.; Sioux Falls, S. Dak.; Cheyenne, Wyo. DATA FOR EACH REPORTING CENTER. [In thousands of dollars.]

1920 1919 Week ending— Week ending— Federal Reserve district. Oct. 27. Nov. 3. Nov. 10. Nov. 17. Nov. 24 Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov.

No. 1—Boston: Bangor 3,874 3,789 3,879 4,435 3,619 3,154 3,312 3,157 3,531 3,128 Boston 302,983 316,992 288,345 338,499 282,557 314,920 352,914 312,038 409,286 347,560 Fall River 7,682 11,293 9,703 8,751 7,091 10,238 16,238 11,138 13,095 14,230 Hartford 23,422 26,935 23,239 26,908 18,590 23,135 23,861 24,160 23,030 16,790 Holyoke 4,080 4,856 4,731 4,341 4,297 3,523 4,317 4,104 4,119 4,629 Lowell 5,681 7,041 6,477 6,272 5,239 5,108 6,933 5,041 6,415 9,679 Manchester... 4,474 4,829 4,694 6,836 5,029 New Bedford. 8,061 10,257 7,586 7,468 6,879 7,761 11,427 7,976 12,002 9,130 New Haven.. 21,785 21,603 19,698 19,932 19,081 16,002 18,325 18,146 19,969 16,347 Portland 11,341 9,273 9,876 9,862 9,266 7,029 7,876 7,188 8,928 6,828 Providence... 50,756 38,904 36,828 37,743 38,550 35,338 40,623 38,206 45,136 35,259 Springfield... 16,677 21,475 18,444 19,963 16,348 16,898 23,669 17,216 19,495 17,768 Waterbury... 8,100 6,338 8,125 8,033 6,831 6,901 8,146 9,247 9,502 7,722 Worcester.... 20,674 20,812 17,359 20,618 18,709 18,642 18,311 15,675 25,622 19,254 No. 2—New York: Albany 20,875 16,336 25,004 19,662 16,943 20,230 17,110 20,200 12,919 17,207 Binghamton.. 4,160 4,123 4,580 4,218 3,991 3,556 3,463 4,416 4,543 3,615 Buffalo 69,314 67,459 73,480 74,660 71,307 61,923 61,499 68,634 69,232 67,359 New York 4,620,664 4,315,498 4,906,375 5,076,964 4,732,177 5,713,194 5,437,575 6,313,998 6,028,439 5,364,902 Passaic 5,204 4 867 5,992 5,648 5,613 5,325 4,594 5,334 6,692 5,075 Rochester.... 31,622 30,553 32,220 37,077 31,972 27,859 32,002 30,192 35,525 22,970 Syracuse 16,778 19,420 18,907 18,485 16,259 1, 15,559 17,384 17,340 15,452

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Debits to individual accounts at clearing-house banks—Continued. DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.]

1920 1919 Week ending— Week ending— Federal Reserve district- Oct. 27. Nov. 3. Nov. 10. Nov. 17. Nov. 24. Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 26

No. 3—Philadelphia: Altoona 3,980 2,849 3,160 3,104 3,420 3,456 2,910 4,060 3,145 3,740 Chester 5,200 4,953 5,816 5,581 5,517 4,658 3,748 5,453 5,011 4,848 Harrisburg 2,500 2,738 2,760 3,060 2,064 4,183 4,190 3,600 4,670 3,610 Johnstown 4,964 4,853 5,490 6,040 5,240 3,164 2,922 3,580 3,616 2,786 Lancaster 5,912 5,402 6,005 5,855 5,077 5,363 4,976 5,599 5,741 5,316 Philadelphia 363,500 331,198 365,736 367, 877 360,450 348,588 307,602 374,474 370,800 335,399 Reading 4,330 4,039 4,627 4,702 3,856 3,580 3,756 4,735 3,791 4,044 Scranton IS,221 13,309 19,133 13,976 16,544 14,707 10,937 17,125 13,123 17,568 Trenton 12,099 11,717 13,618 13,817 12,339 10,086 9,938 11,932 11,673 11,101 Wilkes-Barre 9,540 9,543 10,233 9,290 9,000 8,408 6,984 7,383 9,713 8,277 Williamsport 4,167 3,906 4,568 4,330 3,795 3,355 3,433 3,879 4,058 3,462 Wilmington 6,566 7,068 7,364 7,441 8,488 10,036 9,488 10,086 10,330 8,614 York 4,249 4,415 4,449 4,631 4,197 3,744 3,430 3,786 3,982 3,804 No. 4—Cleveland: Akron 19,636 17,937 18,543 18,528 14,436 25,034 25,945 27,049 28,193 27,517 Cincinnati 66,271 62,239 58,905 67,668 64,356 57,307 57,155 60,637 63,436 63,094 Cleveland 177,855 181,622 161,910 187,032 167,691 154,521 162,212 167,761 177,970 161,696 Columbus 29,749 27,810 27,828 29,865 30,127 27,228 27,341 28,059 29,594 26,185 Dayton 11,182 11,153 11,581 11,724 10,638 11,126 11,746 12,038 12,573 11,415 Erie 8,160 7,489 8,590 8,579 8,531 6,333 6,469 7,126 7,152 6,706 Greensburg 7,314 6,020 2,669 5,636 5,811 8,431 3,494 4,042 4,660 3,387 Lexington 4,594 5,453 4,543 4,893 3,757 4,340 5,165 4,705 5,858 5,447 Oil City 3,524 3,400 4,370 3,800 3,182 2,599 3,108 2,246 2,415 2,817 Pittsburgh 258,406 204,233 238,803 225,358 240,325 188,666 164,778 185,644 173,325 194,441 Springfield 3,657 3,062 3,084 3,264 3,324 3,151 3,956 3,721 3,372 3,025 Toledo 30,281 29,002 24,357 35,371 27,957 24,455 26,000 34,969 24,219 27,730 Wheeling 10,624 10,014 10,508 10,118 12,173 7,665 8,686 8,011 9,283 5,862 Youngstown 15,069 14,757 18,008 16,495 12,010 12,471 11,213 14,495 12,139 12,477 No. 5—Richmond: Baltimore 109,788 110,483 108, 690 109,056 99, 438 94,554 91,308 105,011 119,971 104,006 Charleston 6,900 6,220 6,250 7,150 6,980 12.611 14,273 13,505 12,070 10,889 Charlotte 7,037 8,206 8,164 13,192 7,139 9; 500 8,700 8,300 10,300 S.500 Columbia 5,461 6,168 6,915 6,004 5,338 11,064 10,255 9,491 9,939 8,853 Huntington 6,293 5,945 6,700 7,136 7,207 Norfolk 17,702 17,044 19,844 19,926 20,068 20,665 25, 482 28.997 26, 768 23,404 Raleigh 3,800 3,900 5,000 3,890 4,100 4,850 6,335 5, .r00 4,900 5,300 Richmond 28,559 31,108 35,615 34,963 31,220 32, 724 36,302 35, 405 39,099 34,017 Washington 33,366 38, 052 37,031 39,510 34,697 No. 6—Atlanta: Atlanta 28,184 29,234 27,921 29,258 26,790 35,948 37,928 38,685 38,291 36,977 Augusta 8,513 9,127 8,076 8,242 7, 459 12,958 12,893 14,926 16,115 14,398 Birmingham 18,521 18, 456 17,478 19.125 17,771 16,124 15,980 14, 827 16;844 16,462 Chattanooga 10.824 11,560 11,515 11,982 10,784 12,135 13,166 11,831 14,129 11,646 Jacksonville 12.825 13,826 12,960 13,162 11,078 12,776 11,853 10, 454 14,887 12,889 Knoxville 7,561 6,753 6,779 7,371 8,090 5, 765 6,807 6,305 7,490 5,865 Macon 5,839 5,427 5,473 5,959 4, 643 9,697 10,186 8,868 10,992 8,731 Mobile 7,435 13,947 6,747 7.355 6,802 8, 758 9,616 9,783 9,525 7,833 Montgomery 4,125 4,327 4,095 4; 185 3,846 6,266 6,873 6,702 7,185 6,252 Nashville 23,477 20,405 25,957 24,328 22,973 21,600 23,379 21,305 30,094 24,621 New Orleans 80,326 65,123 85,088 77,378 77,649 82,864 89,699 77,962 97,918 82,955 Pensacola 2,023 2,351 2,306 1,833 1,839 2,191 2,656 2,066 2,507 2,343 Savannah 15,853 16,257 15,703 18,589 15,767 34,398 28,804 25,875 24,620 26,598 Tampa 5,928 6,400 6,633 6,682 4,752 5,367 4,605 5,231 5,605 Vicksburg 1,681 1,585 1,660 1,641 1,548 1,991 2,568 2,860 2,408 1,933 No. 7—Chicago: Bay City 3,122 2,820 2,863 3,395 3,559 2,915 3,668 3,318 4,206 3,690 Bloomington 2,278 2,479 2,413 2,587 1,997 2,691 2,760 2,586 2,858. 2 268 Cedar Rapids 12,354 9,549 12,908 9,980 10,277 8,412 9,741 10,443 12,317 7,537 Chicago 739,647 648,623 723,849 758,503 642,040 677, (46 722,789 689,392 773,120 828,342 Davenport 8,508 6,887 7,289 8,490 6,580 7,628 8,831 8,338 7,128 6,217 Decatur 3,332 2,832 3,627 3,607 3,360 3,278 3,597 3,687 3,847 3,136 Des Moines 19,177 14, 792 21,568 17,990 17,189 20,726 21,633 20,943 19,882 19,778 Detroit 140,494 130,754 136,690 158,107 118,293 118,97b 145,956 139,065 183,553 115,932 Dubuque 3,784 3,132 4,269 2,620 3', 738 2,275 2,381 2,597 2,980 2, C60 Flint 6,734 7,201 6,677 5,745 5,703 9,653 10,943 9,228 11,931 10,086 Fort Wayne 7,098 7,536 8,524 7,855 7,891 7,250 7,470 6,755 7,726 6,363 Grand Rapids 22,062 23.623 22,739 21,291 21,599 18,720 17,880 20,459 18,848 16,438 Indianapolis 34,574 30.624 36,961 37,721 33,053 31,722 34,374 36,392 39,032 34,870 Jackson 4,127 4,463 3,539 4,359 4,209 4,802 4,593 4,821 4,896 5,208 Kalamazoo 5,474 5,328 5,735 5,854 5, 250 3,897 4,382 4,308 4,922 4,462 Lansing 5,070 5,995 5,519 4,670 5,969 5,338 5,732 6,177 6,223 6,334 Milwaukee 62,574 61,614 69,262 80,266 53,730 55,272 58, 750 57,070 60,168 53,880 Moline 2,498 1,913 2,847 2,681 2,849 Peoria 9,477 8,194 9,593 8,907 7,330 8,995 10,120 11,857 10,473 8,816 Rockford 5,644 6,077 6,152 6,107 4,710 5,038 5,947 5,655 5,466 5,860 Sioux City 13,928 13,125 13,109 14,559 12,397 12,805 13,746 15,459 13,829 10,203 South Bend 5,987 5,970 5,145 5, 739 3,949 4,725 4,197 3,981 3,519 3,139 Springfield 2,990 2,749 3,530 3,636 3,122 3,367 5, 832 4,952 6,870 5,043 Waterloo 3,091 3,024 4,173 3,675 3,183 3,583 3,437 3,280 3,331 3,893 No. 8—St. Louis: Evansville 5,515 5,140 5,475 5,681 4,674 4,053 4,416 b, 745 5,626 4,409 Little Rock 11,296 12,071 8,474 12,570 12,038 9,897 10,335 10,008 11,734 10,406 Louisville 25,743 26,378 26,557 29,605 22,910 30,651 34,861 36,888 38,625 28,432 Memphis 31,628 29,113 32,868 33,021 30,016 40,280 43,558 39,505 53,091 44,478 St. Louis 143,737 131,729 145,687 153,196 136,845 135,102 145,991 152,494 168,099 152,713

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Debits to individual accounts at clearing-house banks—Continued.

DATA FOR EACH REPORTING CENTER—Continued. [In thousands of dollars.]

1920 1919 Week ending— Week ending— Federal Reserve district. Oct. 27. Nov. 3. Nov. 10. Nov. 17. Nov. 24. Oct. 29. Nov. 5. Nov. 12. Nov. 19. Nov. 26,

No. 9—Minneapolis: Aberdeen 1,824 1,732 2,275 1,911 1,319 1,723 2,142 1,515 1,420 Billings 2,608 1,629 3,010 3,262 2,961 2,285 2,582 2,710 2,880 2,787 Duluth 38,656 35,536 44,297 39,010 36,931 20,560 27,628 21,185 19,618 16,271 Fargo 3,675 3,844 3,868 3,572 3,028 7,654 9,515 8,765 9,167 2,796 Grand Forks 1,727 1,873 2,158 1,993 1,797 1,989 2,973 2,003 2,275 1,931 Great Falls 2,714 2,528 3,792 3,257 3,148 2,197 2,611 2,943 3,183 3,542 Helena 2,162 2,674 3,279 2,614 2,639 2,531 2,737 3,009 3,014 2,378 Minneapolis 95,917 86,458 112,360 105,547 99,482 101,836 94,816 92,179 101,698 101,181 St. Paul 38,436 31y,402 41,155 44,751 35;, 113 34,743 43,611 38,504 41,820 44,137 Sioux Falls 5,600 5j, 200 5,400 6,400 5,000 Superior 2,770 2,463 2,565 2,326 2,253 1,985 2,353 1,980 2,036 1,844 Winona 1,267 1,090 1,460 1,537 1,152 1,232 1,304 1,205 441 1,248 No. 10—Kansas City: Atchison 439 342 426 388 384 499 548 477 532 580 Bartlesville 3,743 3,959 3,106 3,930 3,695 3,727 2,912 3,474 2,478 Cheyenne 1,915 2,343 2,216 1,979 2,050 2,399 Colorado Springs— 2,760 2,750 3,305 3,110 4,618 3,023 3,336 2,882 3,602 3,061 Denver 55,471 49,502 51,130 51,149 53,006 38,212 41,715 38,438 55,115 52,285 Joplin 2,954 2,890 3,207 2,493 3,166 2,566 3,175 3,817 3,831 3,258 Kansas City, Kans. 4,189 4,017 4,528 4,497 4,131 2,955 2,988 3,346 3,184 3,301 Kansas City, Mo.... 88,324 88,597 94,385 99,403 92,910 94,798 101,150 91,362 107,138 108,313 Muskogee 5,772 5,252 4,924 7,989 5,227 6,247 7,082 7,127 7,303 7,561 Oklahoma City 29,715 23,642 26,439 26,269 32,425 18,225 18,154 18,951 19,798 19,917 Omaha 56,572 49,861 54,037 50,665 52,646 74,374 61,020 57,788 62,710 59,739 Pueblo 4,726 3,992 6,760 16,814 17,809 2,866 3,718 4,593 17,278 8,738 St. Joseph 18,892 19,624 19,215 17,012 16,176 18,408 19,414 22,116 22,097 21,300 Topeka 3,763 3,919 4,311 3,635 2,947 5,651 6,467 6,019 6,163 5,779 Tulsa 29,829 26,932 26,841 32,587 24,486 24,610 24,896 13,677 13,611 28,715 Wichita 11,882 11,855 10,561 13,080 9,347 12,617 12,209 24,721 25,771 11,080 No. 11—Dallas: Albuquerque 1,688 1,898 2,310 2,218 2,011 1,798 1,967 2,035 2,225 1,952 Austin 4,275 4,445 3,595 4,308 3,723 4,098 4,402 4,818 4.922 5,158 Beaumont 4,071 4,410 4,503 4,112 4,520 3,788 4,800 4,330 4,248 4,738 Dallas 48,061 47,486 46,832 44,981 45,201 49,275 49,329 52,367 59,849 54,297 El Paso 9,811 9,631 10,440 9,626 10,228 7,362 7,551 10,155 9,686 9,428 Fort Worth 28,461 22,397 26,986 26,860 25,181 24,808 24,984 27,017 29,281 31,467 Galveston 13,821 12,577 12,688 12,539 12,711 12,793 14,243 12,930 14,509 12,269 Houston 45,032 43,081 39,143 33,902 34,426 45,775 37,863 39,244 46,257 41,944 8,018 6,797 9,037 7,988 8,021 7,622 7,908 8,596 9,980 9,275 Shreveport 7,710 8,426 9,035 8,295 7,933 10,442 7,915 8,948 10,506 9,979 Texarkana 1,878 1,846 2,481 2,714 1,928 1,548 1,665 1,688 2,273 1,746 Tucson 1,485 1,501 1,887 1,464 1,633 1,287 983 1,424 725 1,569 Waco 4,977 4,220 4,078 4,250 4,235 3,646 4,975 3,560 6,129 4,312 No. 12—San Francisco: Berkeley 2,449 2,111 3,940 2,946 2,718 2,245 2,799 2,696 2,945 2,247 Boise 2,753 2,678 3,358 3,323 3,091 4,250 3,854 4,068 5,537 3,452 Fresno 18,672 16,432 17,448 20,795 15,559 11,780 14,354 11,299 15,511 11,545 Long Beach 5,092 5,344 5,547 6,332 4,783 3,414 4,119 3,599 4,784 4,311 Los Angeles 102,800 93,219 103,365 112,998 104,200 81,957 85,274 72,933 105,130 95,478 Oakland 19,187 19,476 21,406 20,584 20,115 16,744 19,130 17,569 20,691 16,954 Ogden 3,912 6,001 4,085 6,147 6,6.57 3,754 4,205 4,005 6,717 6,206 Pasadena . 5,026 4,324 6,018 5,540 5,890 3,692 4,531 3,826 5,477 4,574 Portland 42,007 49,143 48,767 49,113 41,828 52,970 47,495 38,637 59,730 49,042 Reno 2,868 2,253 2,782 3,344 3,421 3,469 3,497 3,254 3,154 3,120 Sacramento 17,519 16,221 21,030 23,047 14,329 13,077 15,990 14,452 19,828 17,208 Salt Lake City 18,565 17,153 18,340 19,700 18,508 16,649 18,253 18,093 22,611 22,036 San Diego 7,675 7,128 8,905 9,382 7,845 4,967 5,790 4,511 6,579 4,571 San Francisco 224,000 194,634 231,066 238,683 221,472 208,603 210,702 162,639 223,178 215,540 San Jose 7,533 7,008 6,957 7,545 4,669 7,653 8,421 6,982 9,277 6,633 Seattle 40,849 39,832 39,608 41,631 37,138 49,844 52,737 44,940 58,408 56,911 Spokane 14,766 11,452 14,223 14,725 13,275 13,229 14,697 12,162 14,832 11,818 Stockton 5,459 4,971 4,288 7,107 4,221 9,052 6,514 5,380 7,846 5,092 12,142 11,316 9,634 11,590 10,514 9,402 13,161 10,123 Tacoma 11,067 10,397 3,996 Yakima 4,086 3,537 4,173 3,683 3,266 4,098 4,468 4,890 4,062

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DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS DURING OCTOBER, 1920. Discount and open-market operations of the stock paper, aggregated 3,213 millions, as Federal Reserve Banks during October and against 3,110 millions the month before, and September, 1920 and 1919, are shown in sum- 694 millions in October of last year. mary form for the system as a whole in the The average maturity of all paper discounted table below. Detailed figures for each Federal in October figures out at 13.26 days after dis- Reserve Bank for the most recent month are count by the Federal Reserve Banks, com- given on pages 1347-1349: pared with 14.27 days in September and 9.54 days in October of the past year. The in- Summary of discount and open-market operations of Federal crease in average maturity, as compared with Reserve Banks in October and September, 1920 and 1919. 1919, is due mainly to the fact that a larger [In thousands of dollars.] proportion of the paper discounted by the Reserve Banks for member banks consists of 7 1920 1919 redispounted customers paper of varying ma- turities, the proportion of member banks7 Octo- j Sep- I Octo- Sep- 15-day collateral notes being smaller than a ber. tember. j ber. j tember. year ago. The average rate of discount was 6.40 per cent, marking a slight increase from Total discount and open-market the September average of 6.33 per cent. In purchases 8,013,263 8,446,264 8,468,032 8,801,291 Discounts—total 7,548,456 7,298,9698,060,3186,726,155 1919 the average rate for October was 4.19 Secured by Government war obligations 4,305,307 4,164,1157,348,942 6,238,286 per cent, and for September 4.18 per cent Otherwise secured and unse- cured—total 3,243,149 3,134,854 711,376 487,869 Total bills purchased in October were 24 Commercial n. e. s., agricul- millions above the September amount, the tural and live-stock paper.. 3,213,736 3,109,778 694,040 476,862 7 Trade acceptances 19,157 , 16,064 10,619 volume of bankers acceptances purchased Bankers' acceptances 10,256 17,131 1,272 388 Average maturity (in days) 13.26 7,945 9.54 9.44 being about 20 millions larger and that of dollar Average rate (365-day basis), 14.27 exchange about 4 millions larger than the per cent 6.40 6.33J 4.19 4.18 Open-market operations: month before, while trade acceptances de- Bills purchased—total 281,832 257,988; 335,262 205,048 7 Bankers' acceptances—total.. 269,284 249,268 329,864 201,962 clined somewhat in amount. Of the bankers In the domestic trade 66,244 52,961 81,819 48,557 acceptances purchased 66 millions were in the In the foreign trade 203,040 196,307 248,045 153,405 Trade acceptances—total 1,670 2,130 4,989 2,773 domestic trade and 203 millions in the foreign In the domestic trade 735 203 1,938 479 trade. In the foreign trade 9351 1,927 3,051 2,294 Dollar exchange 10,871 6,590 409 313 The average maturity of all paper purchased Average maturity (in days) — 35.51 41.71) 48.36 46.15 Average rate (365-day basis), by Federal Reserve Banks in October was 35.51 per cent 6.05 6.04 4.26 4.25 United States securities pur- days, compared with 41.71 days in September chased: and 48.36 days in October, 1919. Average Bonds Certificates of indebtedness 182,927. 889,307 72,4521,870,088 maturity of purchased paper varied decidedly for the different Federal Reserve Banks: At the New York and Boston banks, where a large Discount operations of the Federal Reserve proportion of the acceptances are held under Banks in October aggregated 7,548 millions, 15-day repurchase agreements, the maturities or 249 millions more than the month before, averaged 24.03 days, while at the other Reserve though 512 millions less than in October of the Banks average maturities were much higher, preceding year. The figures in the table are the highest averages being 69.79 days reported exclusive of bills discounted for other Federal for the Minneapolis bank and 67.51 days for Reserve Banks, which totaled 393 millions dur- the Philadelphia bank. The rate charged on ing October and 440 millions during September purchased paper varied from 5| to 7J per cent, of this year, and 127 millions during October the average for the month being 6.05 per cent, and 189 millions during September, 1919. compared with 4.26 per cent for October of Discounts of paper secured by Government last year. war obligations, including Treasury certificates, During the month under review, 33 banks were larger by 141 millions in October than in were added to the membership of the system, September, while other discounts increased by the total number of member banks increasing 108 millions. Trade acceptances discounted in from 9,525 on the last day of September to October totaled 19 millions, as against 17 mil- 9,558 on the last day of October, while the lions in September; bankers7 acceptances aggre- number of member banks accommodated gated 10 millions in October, compared with 8 through discount of paper increased from 4,758 millions in September; and all other discounts, in September to 4,952 in October. The num- including commercial, agricultural, and live- ber of member banks in each district at the end

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of October and of September and the number Federal Reserve Bank holdings of dis- and percentage accommodated during each of counted and purchased paper, by classes, at the two months are shown in the following the end of October and September, 1920 and statement: 1919, are shown in detail on page 1349, and are summarized in the following table: Member banks Member banks in district. accommodated. Summary of discounted and purchased paper held by the Federal Reserve Bank. Federal Reserve Banks at the end of October and of Sep- Sep- Sep- tember, 1920 and 1919} Oct. 31. Oc- tem- Oc- tem- tober. ber. tober. ber. [In thousands of dollars.]

Boston 434 434 217 219 50.0 50.5 New York 780 776 306 323 39.2 42.9 1920, end of— 1919, end of— Philadelphia... 697 694 310 348 44.5 50.1 Cleveland 869 866 248 258 28.5 29.8 Richmond 610 610 340 356 55.7 58.4 Atlanta 449 446 323 310 71.9 69.5 Octo- Sep- Octo- Sep- Chicago 1,404 1,404 848 772 60.3 55.0 ber. tember. ber. tember. St. Louis 569 310 303 54.5 53.2 Minneapolis 997 508 410 51.0 41.5 Kansas City... 1,084 1,080 614 547 56.6 50.6 Discounted paper, total 2,801,297 2,704,464 2,128,547 1,882,282 Dallas , 844 841 542 521 64.2 61.9 Secured by Government war San Francisco.. 821 817 386 391 47.0 47.9 obligations 1,203,905 1,220,423 1,681,082 1,572,503 Otherwise secured and unse- Total 9,558 | 9,525 j 4,952 4,758 I 51.8 j 50.0 cured, total 1,597,3921,484,041 447,465 309,779 Commercial paper, n. e. s. 1,322,0491L, 229,465 374,758 238,134 Agricultural paper 131,528 120,998 28,447 32,932 Live-stock paper 109,121 103,426 27,028 27,273 An additional statement shows the growth Trade acceptances 23,155 22,080 16,261 10,961 Bankers' acceptances 11,539 8,072 971 479 in membership of the system from month to Purchased paper, total 299,487 301,211 394,355 300,129 month from October, 1919, to October, 1920, Bankers' acceptances, total... 296,070 298,223 387,617 297,153 Member banks 194,908 200,976 271,701 208,784 the number of member banks accommodated Nonmember trust com- during each month, and the proportion of mem- panies 1, 3,009 8,021 8,255 Nonmember State banks. 37,642 38,939 36,707 24,821 ber banks receiving accommodation. It will Private bankers 33,787 29,788 42,677 33,420 Foreign bank branches be seen that during the year 681 members were and agencies 27,864 25,511 28,511 21,873 added to the system, and that the number of Trade acceptances, total 3,417 2,988 6,738 2,976 Domestic 644 207 1,740 591 banks accommodated in October of the current Foreign 2,773 2,781 2,385 year was the largest on record, 4,952, or 51.8 per cent of the total number of banks in the 1 For discounted paper the figures are for ths List Friday of e.ich month; system. The proportions of banks accommo- for purchased paper for the last day of each month. dated was considerably higher for the southern and middle western Reserve Banks than for Among the principal changes between Sep- those in the east and the far west. The lowest tember and October in holdings of discounted percentage, 28.5 per cent, is reported for the paper the following are to be noted: A decrease Cleveland bank, and the highest, 71.9 per cent, of 17 millions in paper secured by Government for the Atlanta bank. war obligations, accompanied by an increase of 113 millions in paper not so secured. Hold- Member banks ac- ings of agricultural paper were about 11 mil- Number of commodated dur- member ing month. lions larger and those of live-stock paper about Year and month. banks at end of 6 millions larger than the month before, in- month. Number. Per cent creases of 1 million in trade acceptances on hand and of 3 millions in bankers' acceptances

1919. held also being shown. The increase m com- October 8,977 3,839 42.8 mercial paper held was 93 millions for the November 9,009 3,649 40.5 ,069 3,659 40.3 month. Holdings of purchased paper w^ere 299 1920. millions at the end of October, compared with January 9,112 3,461 38.0 301 millions at the end of September. February 9,161 3,338 36.4 March 9,227 3,670 39.8 A table showing average daily holdings of the April 9,271 4,175 45.0 May 9,329 4,645 49.8 principal classes of earning assets and annual June 9,395 4,948 52.7 rates of return for each month from October, July 9,458 4,858 51.4 August 9,487 4,780 50.4 1919, to October, 1920, is given below. Oc- September 9,525 4,758 50.0 October 9,558 4,952 51.8 tober figures by Federal Reserve Banks are shown on page 1348.

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During October, 1919, average daily holdings on the other hand, reached a maximum of 576 of discounted bills were 2;073 millions, while millions in January of this year and declined during October, 1920, they were 713 millions steadily since that time, totaling only 304 mil- larger, or 2,786 millions. While there were lions during October. The rate of earnings on temporary recessions in January and June, the purchased paper rose from 4.22 per cent in general upward tendency continued throughout October, 1919, to 6.07 per cent in July, 1920, the period under review, in spite of the fact and has remained approximately at that level that the average rate of discount rose con- since. No marked fluctuations either in aver- tinuously from 4.15 per cent for October, age holdings or in rate of earnings are noted for 1919, to 6.34 per cent for the most recent United States securities. month. Average holdings of purchased bills,

Average daily holdings by Federal Reserve Banks of each class of earning assets, and annual rate of earnings; monthly figures, October, 1919, to October, 1920.

! Average daily holdings (in mil- Annual rate of earnings from— lions of dollars). I All Year and month. ! All United Year and month. classes Dis- Pur- United I classeOf s Dis- Pur- States of counted! chased States counted chased securi- earning bills. bills. securi- Iearnin- g bills. bills. ties. i assets. ties. assets.

Per Per Per Per 1919. 1919. October October cent. cent. cent. cent. 2,073 340 296 3.95 4.15 4.22 2.18 November November. 4.40 ,146 455 307 December.. 4.16 4.33 2.22 2,157 550 327 4.29 4.55 4.54 2.19 1920. 1920. January •3,044 2,143 576 325 January 4.46 4.71 4.79 2.18 February.. 3,158 2,302 547 309 February.. 4.88 5.20 5.06 2.18 March 3,208 2,383 481 344 March 5.12 5.49 5.47 2.10 April 3,192 2,440 420 332 April 5.23 5.58 5.70 2.10 May 3,256 2,538 416 302 May 5.36 5.66 5.77 2.22 June 3,210 2,461 401 348 June 5.51 5.89 5.98 2.24 July 3,201 2,519 364 318 July 5.71 6.11 6.07 2.15 August 3,234 2,605 326 303 August 5.81 6.19 6.07 2.22 September. 3,317 2,677 314 326 September. 5.83 6.22 6.06 2.35 October 3,395 2,786 304 305 October 5.94 6.34 6.07 2.20

Total discount and open-market operations of each Federal Reserve Bank during October, 1920.

United States securities pur- 1 Bills dis- Bills chased. Total. counted bought Federal Reserve Bank. for in member open Bonds and Certificates of October, October, banks. market. victory notes. indebtedness. 1920. 1919.

Boston $337, 362,021 $29,068,813 $46,817. 500 $413,248,334 $432,396,299 New York 4,914, 285,965 145,283,478 76,660; 000 5,136,229,443 4,660,916,510 Philadelphia.. 374, 913,501 8,765,355 $48,000 23,576, 500 407,303,356 1,155,157,238 Cleveland 170, 536,687 24,045,906 5,000, 000 199,582,593 337,833,565 Richmond 240, 870,499 3,745,000 4,000, 000 248,615,499 325,092,997 Atlanta 226, 884,442 2,959,767 1,000, 000 230,844,209 216,636,862 Chicago 487, 434,416 27,335,649 20, 527, 500 j 535,297,565 455,306,043 St. Louis 208. 162,884 2,101,938 408, 500 210,673,322 223,927,323 Minneapolis... 83: 030,732 482,750 484, 500 83,997,982 112,823,897 Kansas City... 163: 968,589 2,078,481 3, 300; 500 169,347, 570 172,215,594 Dallas 553,296 1,395,000 114,948,296 138,814,107 San Francisco. 227^ 453,203 34,569,740 1,152,000 263,174,943 236,911,796 Total October, 1920 7, 548, 456,235 281,831,877 48,000 182,927,000 ; 8,013,263,112 Total October, 1919 8,060,317,969 335,261,712 50 72,452,500 ! 8,468,032,231 Total 10 months ending October 31, 1920 67,976,281,169 2,732,695,806 •288,600 6,439,443,000 i 77,148,708,575 Total 10 months ending October 31,1919 64,468, 598,764 2,083,773,404 1,752,025 3,920,914,500 1 7*6," 475,' 039," 693

1 Includes $1,000 of municipal warrants.

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Average daily amount of earning assets held by each Federal Reserve Bank during October, 1920, earnings fronfeach class of earning assets, and annual rate of earnings on basis of October, 1920, returns.

Average daily holdings of—

Federal Reserve Bank. Discounted Purchased United States bills. bills. securities. Total.

Boston $172,630,679 $35, 836,064 $24,098,242 $232,564,985 New York 950,581,967 85! 859,297 73,603,300 1,110,044,564 Philadelphia 174,145,655 n.714,583 33,287,445 225,147,683 Cleveland 218,432,933 45; 563,154 24,244,166 288,240,253 Richmond 110,777,909 b, 923,520 13,623,832 130,325,261 Atlanta 128,973,299 2, 376,556 15,816,612 147,166,467 Chicago 468,593,795 45, 929,718 44,907,568 559,431,081 St. Louis 117,730,488 378,440 18,487,755 137,596,683 Minneapolis 85,402,000 l! 351,000 8,613,000 95,366,000 Kansas City 110,925,822 2;', 780,844 21 790,580 135,497,246 Dallas ." 77,082,612 896,855 12,269,419 90,248,886 San Francisco 170,938,712 58, 370,812 13,821,531 243,131,055 Total, October, 1920 2,786,215,871 303,980,843 304,563,450 3,394,760,164 Total, October, 1919 2,073,415,643 340,188,783 295,725,153 2,709,329,579

Earnings from— Calculated annual rate of earnings from—

Federal Reserve Bank. Purchased I United Dis- Pur- United Discounted 1 States Total. counted chased States Total. bills. bills. securities. bills. bills. securities.

Per cent. Per cent. Per cent. Per cent. Boston $973,684 $186,562 i $42,549 $1,202,795 6.66 6.15 2.08 6.11 New York 5,155,359 438,215 ! 160,468 5,754,042 6.40 6.03 2.57 6.12 Philadelphia 862,616 91,920 : 61,323 1,015,859 5.84 6.12 2.17 5.32 Cleveland 1,207,040 237,705 • 42,339 1,487,084 6.51 6.14 2.06 6.07 Richmond 547,586 30,825 23,201 601,612 5.84 6.14 2.01 5.45 Atlanta 652,721 11,893 26,102 690,716 6.17 6.11 2.01 5.73 Chicago 2,642,512 234,166 79,562 2,956,240 6.66 6.02 2.09 6.24 St. Louis 583,998 7,338 ' 32,967 524,303 5.86 6.29 2.09 5.36 Minneapolis 485,017 7,602 14,731 507,350 6.69 6.63 2.01 6.26 Kansas City 602,077 14,261 39,081 655,419 6.41 6.06 2.12 5.71 Dallas ." 374,171- • 4,469 21,708 400,348 5.73 5.79 2.08 5.24 San Francisco 867,182 298,758 24,094 1,190,034 5.99 6.04 2.06 5.78 Total, October, 1920 14,953,963 1,563,714 568,125 17,085,802 6.34 6.07 2.20 5.94 Total, October, 1919 7,317,609 1,219,359 547,895 9,084;863 4.15 4.22 2.18 3.95

Bills discounted during the month of October, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank.

Member banks' collateral Customers' notes. paper Commercial, Average Federal Reserve secured by Trade Bankers' n. e. s., agri- Average rate Bank. Government Secured by acceptances. acceptances. cultural and Total. maturity (365-day war obli- Government O therwise live-stock in days. basis.) gations. war obli- secured. paper. gations.

Per cent. Boston $10,438,905 $259,865,920 $155,546 $66,901,650 $337,362,021 12.37 6.44 New York 67,469,182 2,468,023,390 1 3,663,154 2$5,683,634 2,369,446,605 4,914,285,965 6.95 6.47 Philadelphia 31,126,744 221,498,877 351,216 375,000 121,561,664 374,913,501 15.82 5.59 Cleveland 5,804,290 114,010,893 $402,500 2,220, 426 1,002,500 47,096,078 170,536,687 19.43 5.88 Richmond 3,896,256 199,145,330 1,061,800 1,243,726 35,523,387 240,870,499 15.42 5.98 Atlanta 8,388,538 .136,955,860 676,000 1,808,182 160,332 78,895,530 226,884,442 25.20 6.22 Chicago 9,976,898 261,382,698 777,822 2,967,859 221,445 212,107,694 487,434,416 38.42 6.72 St. Louis 6,212,291 117,052,740 147,000 1,701,243 930,700 82,118,910 208,162,884 26.40 6.10 Minneapolis 2,273,996 32,944,150 2,293,910 536,743 1,999 44,979,934 83,030,732 45.80 6.81 Kansas City 5,611,998 91,874,041 1,029,918 913,887 49,360 63,889,385 163,968,589 39.87 7.13 Dallas 1,190,313 82,721,722 1,461,100 1,110,659 27,069,502 113,553,296 28.59 5.91 San Francisco 3,968,943 163,472,749 799,059 2,484,671 1,831,427 54,896,354 227,453,203 23-38 5-98 Total, Oct., 1920. 156,358,354 4,148,948,370 9,249,109 19,157,312 10,256,397 3,204,486,693 7,548,456,235 13.26 6.40 Total, Oct., 1919. 164,222,840 7,184,719,069 45,649,017 16,064,284 1,271,426 648,391,333 8,060,317,969 9.54 4.19

1 Includes $1,172,608 in the foreign trade. 2 Includes $15,0C0 in dollar exchange bills.

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Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during October, 1920, also average rates and maturities of total bills purchased by each Federal Reserve Bank.

Bankers' acceptances. Trade acceptances. Average Dollar Total Average rate Federal Reserve Bank. exchange bills pur- maturity (365 day Domestic. Foreign. Total. Domestic. Foreign. Total. bills. chased. in days. basis).

Per cent. Boston $9,609,611 $19,109,202 $28,718,813 $350 000 &2P OfiR 812 24.03 6.22 New York 29,027,244 107,592,943 136,620,187 $534,801 $719,057 $1,253,858 7,409,433 145,283,478 24.03 5.96 Philadelphia 1,182,987 6,607,368 7,790,355 975,000 8, 765,355 67.51 6.10 Cleveland . 7,321,359 16,074,547 23,395,908 200,000 200,000 450,000 24,045,906 49.76 6.05 Richmond 538,800 3,206,200 3,745,000 3,745,000 50.77 6.0g Atlanta 938 348 2,021,419 2,959,767 2,959,767 45.69 6.08 Chicago.. 7,588,945 18,956,704 26,545,649 790,000 27,335,649 60.12 6.11 St. Louis 1,961,938 140,000 2,101,938 2,101,938 42.00 6.16 Minneapolis 282,750 200,000 482,750 482,750 69.79 6.08 Kansas City 37,500 2,040,981 2,078,481 2,078,481 60.17 6.59 Dallas 1,395,000 1,395,000 1,395,000 37.82 6.08 San Francisco 6,359,171 27,091,002 33,450,173 215,851 215,851 903,716 34,569,740 50.96 6.05 Total, Oct., 1920.. 66,243,653 203,040,366 269,284,019 734,801 934,908 1,669,709 10,878,149 281,831,877 35.51 6,05 Total, Oct., 1919.. 81,818,557 248,045,528 329, 864,085 1,937,554 3,051,436 4,988,990 408,637 335,261,712 48.36 4.26

Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in October, 1920, distributed by classes.

[In thousands of dollars.]

Member banks' col- Customers' lateral notes. paper se- Commer- Agricul- Live-stock cured by Trade Bankers' cial Federal Reserve Bank. tural paper. Govern- Secured by accept- accept- paper Total. paper. ment war Govern- Otherwise ances. ances. n. e. s. obligations. ment war secured. obligations.

B oston 18,084 77,022 152 23 95,836 191,117 New York 76 140 349 375 598 3,831 6,435 410,934 937,223 Philadelphia 262 10 38,532 76,934 397 150 59,404 175,689 Cleveland . 715 147 11,293 51,815 77 2,243 556 154,337 221,183 Richmond 9 187 205 6,663 33,693 909 1,808 60,070 112,535 Atlanta 17,051 2,182 13,559 55,402 133 1,469 197 50,680 140,673 Chicago 33,768 19,812 125,138 389 4,418 394 279,918 463,837 St. Louis 4,496 3,567 10 683 33,245 81 1,587 1,389 65,606 120,654 Minneapolis 16 375 44 661 5 006 3 657 1,159 448 13,364 84,670 Kansas City 13 365 32,671 9,587 24,238 305 1,843 55 33,713 115,777 Dallas .. ... 15,772 14,559 3,080 17,130 341 757 99 25,900 77,638 San Francisco 20,461 11,119 6,085 47,300 255 4,202 2,241 68,638 160,301 Total, 1920 . 131,528 109,121 282,733 921,172 3,649 23,155 11,539 1,318,400 2,801,297 Total, 1919 28,447 27,028 208,362 1,472,720 18,987 16,261 971 355,771 2,128,547

Acceptances purchased by each Federal Reserve Bank and held on Oct. 30, 1920, distributed by classes of accepting institutions. In thousands of dollars.]

Bankers' acceptances. Trade acceptances.

Foreign Federal Reserve Bank. Non- Non- • bank Total. Member member member Private s branches Total. £jc " Foreign. Total. bank. trust State bank. and company. Bank. agencies.

Boston 28,496 125 718 2,23-8 478 32,055 1 32,055 New York ... 50,384 1,141 14,039 12,380 7,846 85,790 591 2,166 2,757 88,547 Philadplohia 11,168 3 460 2 705 1,919 19,252 1 19,252 20 478 199 6 802 6 374 6 797 40 650 ! 40, 650 Richmond 5,' 611 5,611 ; 5,611 2,294 2,294 2,294 Chicago 38,412 225 3 62i 2 066 267 44,591 44,591 St. Louis 1,118 370 1,488 i 1,488 Minneapolis 1,398 1,398 2,301 2,301 2,301 Dallas 1,070 1,070 i 1,070 San Francisco 32,178 179 8,757 7,899 10,557 59,570 j 53 607 660 60,230 Total: Oct. 30, 1920 194,908 1,869 137,767 33,662 27,884 296,070 1 644 2,773 3,417 299,487 Sept. 30,1920 200,976 3,009 238,939 29, 788 25,511 298,223 | 207 2,781 2,988 301,211 Oct. 31,1919 271,701 8,021 36,707 42,677 28,511 387,617 1,740 4,998 6,738 394,355 Oct. 31,1918 314,719 2,949 11,669 30,242 14,006 373,585 3,947 5,057 9,004 382,589

1 Includes $2,134,000 acceptances of corporations organized under Edge Act. i Includes $1,233,000 acceptances of corporations organized under Edge Act.

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OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM OCT. 16 TO NOV. 15,1920.

[Amounts in thousands of dollars.]

Items drawn on banks in own district. Items forwarded Items forwarded Items drawn on to other Federal to parent bank Located in Located outside Treasurer of Total. Reserve Banks and or to branch in Federal Reserve Bank Federal Reserve Federal Reserve United States. branches. same district. or branch. Bank and branch Bank and branch cities. cities.

Number. Amount. Number. Amount. STumber. .mount Number. Amount. | Number. Amount. Number. Amount.

Boston8 647,437 683,114 2,989,541 465,887 137,422 44,183 3.774,400 193,184 133,086 64,829 New York 070,754 ,165,276 4,094,586 322,977 ,064,580 124,284 6,229,920 612,537 ,013,240 642,592 Buffalo 169,561 116,063 367,899 57,337 15,076 831 552,536 174,231 129,103 35,024 Philadelphia 484,216 890,335 1,915,474 272,647 188,764 30,042 3,588,454 193.024 837,626 226,352 Cleveland 3 335,302 286,196 1,138,229 193,423 63,248 5,916 1,536,779 485,535 39,146 31,264 36,439 15,418 Cincinnati3 165,329 161,973 772,468 98,358 58,887 4,430 996,684 264,761 15,846 21,014 9,913 4 825 Pittsburgh 319,888 380,898 774,327 110,584 47,722 6,382 1,141,937 497,864 59,615 49,617 28,756 9,813 Richmond2 108,293 175,516 1,587,107 307,931 51,399 7,378 1,746,799 490,825 129,118 75,850 33,092 12,635 Baltimore2 205,122 195,964 686,020 92,677 55,390 16,011 946,532 304,652 157,432 119,597 9,872 10,228 Atlanta3 97,267 80,800 312,491 67,780 30,255 4,100 440,013 152,680 23,042 18,749 49,253 10,038 Birmingham 42,306 26,143 140,237 13,881 14,163 1,270 196,706 41,294 17,937 12,776 26,069 52,074 Jacksonville2 33,882 20,789 126,295 16,337 10,529 911 170,706 38,037 26,230 9,410 5,926 2,450 Nashville i 41,809 36,876 199,529 24,345 16,416 1,473 257,754 62,694 27,475 5,450 11,894 1,868 New Orleans2 59,625 64,848 111,921 16,934 18,900 2,517 190,446 84,299 40,395 12,144 6,032 1,091 Chicago 723,524 769,841 3,339,276 415,178 410,852 28,099 4,473,652 ,213,118 306,503 43,067 10,311 3,649 Detroit 229,059 194,812 364,521 48,266 35,987 4,117 629,567 247,195 10,102 6,452 6,125 2,025 St. Louis 243,204 276,907 1,308,604 105,425 154,227 9,482 1,706,035 391,814 26,913 7,009 12,799 1,745 Little Rock 42,969 30,211 291,108 22,373 7,365 1,302 341,442 53,886 7,568 2,390 28,448 4,668 Louisville 84,618 69,613 356,264 27,438 42,149 3,387 483,031 100,438 7,211 1,485 3,411 426 Memphis 70,357 41,107 167,071 15,07? 9,461 1,633 246,889 57,813 2,169 760 3,388 1,119 Minneapolis 288,787 181,873 1,817,352 143,99£ 49,586 3,178| 2,155,725 329,046 116,448 44,937 Kansas City 243,518 334,896 1,987,166 146,091 144,594 11,956 2,375,278 492,949 262,166 65,635 96,664 24,002 Denver2 77,235 79,245 350,687 31,467 20,161 2,772 448,083 113,484 81,266 19,201 43,363 20,316 Oklahoma City 50,959 74,140 910,696 107,784 961,655 181,924 49,482 13,769 23,926 16,356 Omaha 88,202 67,227 529,985 46,637 55,795 2,425 673,982 116,289 32,773 8,373 19,393 8,788 Dallas2 90,725 93,720 1,649,680 316,689 28,132 3,362 1,768,537 413,771 86,346 42,657 55,590 10,303 El Paso2 32,348 12,412 127,640 14,072 13,116 2,450 173,104 28,934 18,543 7,364 13,056 2,555 Houston2 65,20C 52,792 361,461 52,111 96,659 1,893 523,320 106,796 20,647 32,819 8,846 2,209 San Francisco2 117,26/ 114,006 343,047 37,123 53,004 63,698 513,318 214,827 26,60£ 4,990 44,758 7,967 Los Angeles2 178,559 102,642 716,503 65,898 22,529 7,741 917,591 176,281 62,51^ 9,261 32,399 5,826 Portland2 54,576 41,914 197,856 15,028 18,264 3,901 270,696 60,843 2,95f 1,617 30,816 5,539 Salt Lake City s... 60,219 33,340 366,169 43,052 14,282 2,055 440,670 78,44" 12,83! 20,606 8,958 12,573 Seattlel 60,392 45,453 210,191 19,529 28,91C 9,255 299,499: 74,23' 15,26s 6,543 31,875 7,095 2 31,675 176,865 15,768 11,821 1,862 220,368 2,949 19,495 Spokane 22,748 40,378 9,31" Total: Oct. 16 to Nov. 15, 1920. \7,614,184 7., 923,690J30,788,266 4,750,101 2,989,658 414,295 41,392,108 13,088,087 «3,806,922 1,666,552 764,278 297,128 Sept. 16 to Oct. 15,1920. 7,543,851 8:,213,12130,612,929 5,033,93912,510,644 427,398 40,667,424 13,674,458'*3,784,37851,773,070 794,991 305, «12 Oct. 16 to Nov. 15,1919. 6,196,752 7',, 438,529 22,382,854 5,006,048 2,822,482 973,862 31,402,088 13,418,439 6 3,126,287"1,754,892 725,909 331,101

Number of incorpo- rated banks other Number of member j Number of nonmeni- than mutual savings banks in district ber banks on par list banks not on par list Federal Reserve district. Nov. 15. Nov. 15. Nov. 15.

1920 1919 1920 1919 1920 1919

Boston 434 430 258 243 New York.... 782 751 323 321 Philadelphia.. 700 676 437 411 Cleveland 871 841 1,077 1,063 27 Richmond 611 582 1,264 450 340 1,021 Atlanta 454 429 412 347 1,206 1,220 Chicago ,404 1,366 4,278 3,522 673 St. Louis 569 533 2,526 2,127 181 529 Minneapolis.. 915 2,925 1,493 1,395 Kansas City.. 1,028 3,398 3,038 262 Dallas 846 757 1,261 905 267 San Francisco 824 700 1,029 940 121

Total... 9,574 19,188 14,860 1,727 5,515

1 Number of business days in period, 23. 2 Number of business days in period, 24. 3 Number of business days in period, 26. 4 Includes 7,100 items, amounting to $2,206,000 forwarded direct to member banks in other Federal Reserve districts & Includes 7,078 items, amounting to $2,640,000 forwarded direct to member banks in other Federal Reserve districts." e Includes 5,578 items, amounting to $4,468,000 forwarded direct to member banks in other Federal Reserve districts, NOTE.—Number of business days in period was 25 except as otherwise indicated by notes 1, 2, and 3.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1351

CHANGES IN CONDITION OF FEDERAL RESERVE BANKS. For the five weeks between October 22 and Of the total holdings of paper secured by November 26 the Federal Reserve Banks report Government war obligations the largest share, a relatively moderate reduction in their holdings viz, about 53 per cent, is represented by paper of discounted paper, from 2,749.2 to 2,735.1 mil- secured by Liberty bonds, the percentage lions. After an increase of 77.6 millions during varying but little during the period, while the first two weeks undet review, discounted the amount held at the close of the period, paper on hand shows a decline of 42 millions 630 millions, was about 6 millions less than for the week ending November 12 and of 111.4 five weeks before. Paper secured by Victory millions during the following week, when notes constituted between 27 and 28 per cent Government disbursements were extraordi- of the total of war paper held, the November narily heavy. These disbursements included 26 holdings of 318.2 millions being 4.2 millions payment on and after November 15 of the below the October 22 total. Federal Reserve semiannual interest on the second Liberty Bank holdings of paper secured by Treasury loan bonds; also the redemption of the capital certificates show but little change during the and interest coupons of about 93.5 millions of five weeks under review, the total held being in loan certificates issued six months previous. the neighborhood of 244 millions and consti- On the same date the Government issued a tuting about 20 per cent of the total amount new series of 6-month loan certificates aggre- of war paper held. gating 232 millions. Payment for this issue Considerable increases in the holdings of by the banks was made chiefly in the cus- 15-day paper are shown on November 5 and 26, tomary manner, i. e.; by crediting the Govern- when the share of the shortest-term paper in ment account, and it was only when the Gov- the total discounts held came near and exceeded ernment began to draw against its bank credits 60 per cent. Changes in the holdings of 30- that the latter's borrowings from the Reserve day and 60-day paper were relatively moderate, Banks resumed their upward course, as wit- while a large reduction is shown in the total nessed by an increase of 62 millions during the of 90-day paper held on the last two Fridays, week ending November 26 in the total of dis- the ratio of this class of paper to total discounts counted paper held by the Federal Reserve held on November 26 falling below 9 per cent Banks. No appreciable change is shown in from over 13 per cent five weeks earlier. the absolute or relative holdings of paper A steady growth is shown in the amount of secured by Government war obligations, in- 6-month agricultural and live-stock paper cluding Treasury certificates, fluctuations in held, the November 26 holdings of 51.7 millions the holdings of this class of paper coinciding showing an increase of 28.7 millions since with changes in the aggregate amounts of October 22. discounts held, and the ratio of war paper to Holdings of acceptances purchased in open total discounts on hand during the entire market declined from 300.7 to 247.7 millions, period continuing practically unchanged at liquidation being heaviest during the second slightly over 43 per cent. part of November, when as a result of the de- In the following exhibit is given a summary cline in call-money rates the investment de- of the weekly changes in the principal asset and mand for prime bank acceptances showed a con- liability items of the Federal Reserve Banks siderable increase. Fluctuations in the totals for the five weeks under review: of Treasury certificates held reflect largely the Principal asset and liability items of the 12 Federal Reserveamounts of special certificates held by the Banks combined on Fridays, Oct. 22 to Nov. 26, 1920. Reserve Banks to cover advances to the Gov- [In millions of dollars.] ernment pending collection of funds from Oct. Oct. Nov. Nov. Nov. Nov. depositary institutions. On October 22 the 22. 29. 5. 12. 19. 26. banks held 10 millions of such certificates; on Reserves: November 19, following the large disburse- Total i 2,157 2,168 2,170 2,180 2,180 2,195 Gold | 1,995 2,003 2,002 2,009 2,008 2,024 ments on Government account, the total went Bills discounted: | up to 64 millions held by seven Reserve Banks, Total | 2,749 2,801 2,827 2,785 2,673 2,735 Secured by Gov- | while by the following" Friday the total had ernment war ob- i ligations 1,199 1,204 1,215 1,181 1,159 1,192 been reduced to 21 millions, held by the Phila- Allother 1,550 1,597 1,612 1,604 1,514 1,543 delphia, Cleveland, and San Francisco banks. Bills bought in open mar- ket 301 298 300 288 275 248 Considerable reduction in the volume of Certificates of indebtedness 281 269 268 269 331 294 Total earning assets I 3,358 3,396 3,422 3,369 3,307 3,304 interbank rediscounting is noted, the total of Government deposits 15 19 47 18 12 16 paper held under discount for other Reserve Members' reserve deposits. i 1,779 1,806 1,777 1,802 1,782 1,712 Net deposits 1,624 1,675 1,695 1,675 1,633 1,624 Banks showing an almost continuous reduc- Federal Reserve notes in circulation 3,356 3,351 3,354 3,329 3,307 3,326 tion from 243.1 to 154.1 millions, held by the Federal Reserve Bank Boston, Philadelphia, and Cleveland banks. notes i n circulation 214 215 215 215 214 215 Reserve percentages 43.3 43.1 43.0 43.6 44.1 44.4 The latter bank reports on November 26 a

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1352 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

total of 112.1 millions (137.9 millions on Octo- ing the period between a high of 1,694.9 mil- ber 22) held under discount for other Reserve lions on November 5 and a low of 1;623.6 mil- Banks, compared with 95.8 millions held for lions on November 26. Federal Reserve note its own member banks (79.3 millions on Octo- circulation, after a practically continuous re- ber 22). Discounts held by the Boston bank duction during the first four weeks, resumed for other Reserve Banks declined during the five its upward trend during the following week, the weeks from 72.9 to 27.2 millions, while dis- November 26 total of 3,325.5 millions indicat- counts held for its own members went up from ing an expansion of 18.2 millions for the week, 101.2 to 144.9 millions. The list of accommo- though a reduction of 30.6 millions for the five dated Reserve Banks includes besides the weeks under review. Considerable reductions New York bank six other Reserve Banks in in outstanding Federal Reserve note circula- the South and Middle West. On November 1 tion are reported by the Boston, Chicago, and the Atlanta bank abolished its graduated dis- Dallas banks, while the New York, Cleveland, count rates and raised its 90-day paper rate to Richmond, and San Francisco banks report on 7 per cent. This change in discount policy is November 26 higher circulation figures than not yet reflected statistically, total discounts, five weeks previous. Federal Reserve bank including paper rediscounted with other Re- note circulation figures show only moderate serve Banks, showing an increase between changes—the November 26 total of 214.6 mil- October 29 and November 26 from 176.8 to lions being 0.8 million larger than the October 177.2 millions, while rediscounts with other 22 total. Gold with foreign agencies shows a Reserve Banks went up in the meantime further reduction, from 80.4 to 70.2 millions, as from 36.1 to 40.2 millions. For the three the result of transfer of earmarked gold from Reserve Banks of St. Louis, Kansas City, and the Bank of England to the Federal Reserve Dallas, which continued to apply graduated Banks. The total of this item includes at pres- rates during November, a reduction of gross ent also 3.3 millions of gold held earmarked discounts from 429.1 to 378.9 millions, and a for account of the Federal Reserve Banks by the reduction from 115 to 67.9 millions in bills Bank of France. Total gold reserves, as the rediscounted with other Reserve Banks are result of further net gold imports mainly from noted. Great Britain, show a gain from 1,994.6 to Holdings of acceptances purchased from 2,023.9 millions, while total cash reserves show other Reserve Banks decreased from 24.3 to an even larger increase during the period from 14.4 millions, composed of bank acceptances 2,157.3 to 2,195.3 millions. purchased from the New York bank and held The banks' reserve ratio declined from 43.3 by the Boston, Philadelphia, and San Fran- per cent on October 22 to 43 per cent on cisco Reserve Banks. There continue to be November 5. During the following weeks, reported aggregate guarantor's liabilities of largely in consequence of loan liquidation and 16.2 millions on bank acceptances held for the gain in reserves, the ratio shows a gradual account of foreign correspondents. rise to 44.4 per cent, the highest percentage Changes in the several classes of deposits were attained since July 23 and only 1 per cent be- relatively moderate, with the consequence that low the maximum shown for January 9 of the calculatednet deposits show a fluctuation dur- present year.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26, 1920. [In thousands of dollars.] RESOURCES.

Phila- At- Chi- St. Kan- San j Boston. Cleve- Rich- Minne- Dallas. Fran- Total. land. anta. cago. Louis. apolis. sas phia. City. Cisco. I

Gold and gold certificates: Oct. 29 8,023 82,470 1,326 10,538 2,455 6,434 24,448 2,805 7,235 69,2 4,975 13,448 I 164,819 Nov. 5 8,033 92,153 1,308 10,542 2,465 6,547 22,635 4,781 7,211 686 5,080 13,261 I 174,702 Nov. 12 7,993 86,909 1,298 10,256 2,477 6,660 21, 751 4,754 7,238 720 5,121 14,637 169,814 Nov.19 7,825 87,038 1,330 10,348 2,485 6,735 21,912 3,625 7,246 749 6,153 14,820 170,266 Nov.26 7,806 99,490 1,308 10,365 2,496 6,376 21,967 3,577 7,281 766 6,332 14,883 182,647 Gold settlement fund—Federal Reserve Board: Oct. 29 30,299 66,250 53,820 78,342 28,956 7,546 62,866 12,118 9,949 22,622 3,812 39,583 416,163 Nov.5 55,721 57,410 42,29<3 70,126 27,584 6,037 55,081 15,540 10,791 22,605 5,997 48,799 417,9.84 Nov. 12 25,467 60,440 53,744 85,113 20,981 4,375 56,096 13,324 10,061 20,014 8,371 51,089 409,075 Nov.19 37,192 75,969 42,704 71,412 18,846 4,575 53,891 12,585 10,130 24,610 4,417 44,347 400,678 Nov. 26 54,654 74,128 46,414 83,221 21,089 4,692 49,647 15,028 8,317 21,468 4,789 27,780 411,227 Gold with foreign agencies: Oct.29. 5,468 27,276 5,992 6,142 3,670 2,696 8,913 3,520 2,022 3,595 1,947 3,445 74,686 Nov.5. 5,674 28,315 6,218 6,373 3,808 2,798 9,249 3,653 2,099 3,731 2,021 3,575 77,514 Nov.12 5,639 28,347 6,180 6,334 3,785 2,781 9,192 3,631 2,086 3,708 2,008 3,553 77,244 Nov. 19 5,424 27,263 5,944 6,093 3,641 2,675 8,842 3,493 2,006 3,567 1,932 3,418 74,303 Nov.26 „ 5,140 25,638 5,633. 5,774 3,450 2,535 8,380 3,309 1,901 3,380 1,831 3,239 70,210

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1353

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26, 1920—Continued. [In thousands of dollars.] RESOURCES.—Continued.

Phila- New Cleve- Rich- At- San Boston. del- Fran- Total. York. phia. land. mond. lanta. Louis. cisco.

Gold with Federal Reservi agents: Oct. 29 130,705 262,733 116,778 42,065 41,604 64,668 176,381 48,816 26,851 41,320 28,560 94,637 1,175,118 Nov.5. 128,237 251,920 119,097 42, 626 39, 630 64,127 172,407 49,167 26,184 40,080 27,588 91,283 1,152,346 Nov. 12... 134,650 250,751 117,198 53,069 51,401 63,217 169,003 48,180 26,540 39,237 26,629 97.814 1,177,689 Nov. 19. 124,961 250,002 119,666 63,459 48,999 63,426 184,022 48,920 26,035 41,104 24,189 110,963 1.205,746 Nov.26 123,356 249,032 122, 191 61,358 46, 980 61,184 ™ '"" 48,068 26,290 39,921 22,982 108,219 1,197,681 Gold redemption fund: Oct. 29 20,076 37,965 12,511 15,253 11,611 6,759 35,459 5, 794 3,293 4,088 7,263 12,432 172,504 Nov.5 21,883 37,955 13,356 13,708 12,648 7,046 38,916 6,478 3,959 4,849 7,908 10,421 179,127 Nov. 12 19, 693 38,374 13,702 14, 175 5,689 8,246 | 41,611 6,221 3,257 5,230 8,608 10,050 174,856 Nov. 19 18,718 38,000 14,930 12,294 7,261 6,989 i 25,144 5, 711 3,719 3,882 9,646 10,823 157.117 Nov..26... 19,648 38,000 9,867 13,081 8,434 8,478 ! 30,517 6,047 3,437 4,446 10,451 9,775 162,181 Total gold reserves: Oct. 29 194,571 476,694 190,427 252,340 88,296 88,103 1308,067 73,053 49,350 72,317 46,557 1163,545 2,003,320 Nov. 5 219,548 467,753 182,272 243,375 86,135 86,555 1298,288 79,619 50,244 71,951 48,594 '167,339 2,001,673 Nov. 12 193,442 464,821 192,122 268,947 84,333 85,279 297, 653 76,110 49,182 68,909 50,737 .177,143 2,008,678 Nov. 19 194,120 478,277 184,574 263,606 81,232 84,400 293,811 74,334 49,136 73,912 46,337 184,371 2,008,110 Nov. 26... 210,604 486,288 185,413 273,799 82,449 83,265 298,611 76,029 47,226 69,981 46,385 163,896 2,023,946 Legal-tender noteSj silver, etc.: Oct. 29 8,604 129,916 717 1,980 497 i 1,616 8,375 7,309 1,918 l 3,177 521 164,718 Nov.5 9,970 131,070 455 1,962 486 ! 1,626 52 1,847 3,108 390 168,056 Nov.12 10,606 132,380 365 1,962 322 1,723 11,117 7,025 82 1,945 3,334 472 171,333 Nov. 19 9,993 132,58a 501 1,981 474 ! 1,791 11,594 6,933 184 1,977 j 3,616 494 172.118 Nov. 26 8,886 133,297 492 2,051 301 ! 1,977 10,882 6,7f~ 274 2,220 3,796 420 171,364 Total reserves: Oct. 29 203,175 606,610 191,144 254,320 89,719 316,442 80,362 49,438 74,235 49,734 1164,066 2,168,038 Nov. 5 229,518 598,823 182,727 245,337 86,621 88,181 308,086 86,911 50,296 I 73,798 51,702 167,729 2,169,729 Nov. 12 204,048 597,201 192,487 270,909 84,655 87,002 308,770 83,135 49,264 70,854 54,071 177,615 2,180,011 Nov. 19 204,113 610,857 185,075 265,587 81,706 86,191 305,405 81,267 49,320 75,889 49,953 184,865 2,180,228 Nov. 26 219,490 619,585 185,90.1 275,850 82,750 85,242 309,493 82,797 47,500 | 72,201 50,181 164,316 2,195,310 Bills discounted: i Secured by Government war obligations— Oct. 29,.... 95, 106 515,947 115,466 63, 108 40,356 i 68,961 144,950 43,928 8,663 33,825 ; 20,210 53,385 1,203,905 Nov.5...... 84,322 513,943 114,290 71,187 44,062 j 67,497 142,928 45,000 11,545 37,657 : 27,989 54,681 1,215,101 Nov. 12... 86,277 482, 183 113,915 72,874 48,150 I 67,613 141,576 49,073 11,154 31,745 i 27,089 49,328 1,180,977 Nov. 19.... 78,219 469 383 118,967 66,575 47,378 ! 68,665147,533 50,462 12,350 31,879 ! 21,836 45,660 1,158,907 Nov. 26, 78,288 465,027 121,613 95,567 51,042 ! 69,495149,481 49,825 11,712 26,569 i 20,986 52,820 1,192,425 All other— Oct. 29 96 Oil 421 276 60,223 158,075 72,179 71,712 318,887 76,726 76,007 81,952 ! 57,428 1106,916 1,597,392 Nov.5 86,397 429 620 67,231 158,583 71,399 71,897 336,736 73,531 71,732 81,537 ! 52,253 110,808 1,611,724 Nov. 12 96, 880 469 356 60,537 136 658 68,989 70, 713 321,326 68,202 72,740 80,763 | 50,769 106,840 1,603,773 Nov. 19 89 712 426 546 49 071 123,089 64, 781 69,838 308,121 69,849 72,792 83,439 | 51,880 105,349 1,514,467 Nov. 26 93,877 436,760 50 008 112,305 64,457 67,531 328,976 70,344 68,850 87,095 56,154 106,618 1,542,975 Bills bought in open market:2 Oct. 29 31,985 88 546 19 252 39 956 5,663 2,253 44,221 1,488 1,398 2,313 I 1,070 60,230 298,375 Nov.5 27,294 92,682 24 579 39 727 5,637 2,125 42,336 1,933 1,409 2,316 815 58,916 299,769 Nov.12 30 247 91 899 23 561 35 772 5,434 2,244 37,763 1,639 1,549 2,335 610 54,801 287,854 Nov. 19 29,869 95 322 21 043 34 055 5,466 2,150 30,417 1,489 1,290 2,334 315 51,477 275,227 Nov.26 23 055 77 990 17 560 31 201 5,679 2,409 28,091 1,365 1,490 1,818 215 56,830 247,703 U. S. Government bonds: Oct. 29 555 1 462 1 434 834 1,233 | 113 4,490 1,153 116 8,867 ' 3,979 2,632 26,868 Nov. 5 553 1 462 1 434 834 1,233 I 113 4,490 1,153 116 8,866 3,979 2,632 26,865 Nov. 12 552 1 462 1 434 833 1,233 | 114 4,490 1,153 115 8,866 3,979 2,632 26,863 Nov. 19 552 1 467 1 434 834 1,233 114 4,490 1,153 116 8,867 3,979 2,632 26,871 Nov.26 552 1 467 1 434 833 1,233 ! 114 4,489 1,153 i 116 8,867 3,979 2,632 26,869 U. S. ViGtory notes: Oct. 29 5 50 10 3 1 Nov.5 5 50 10 3 1 Nov. 12 : 5 50 10 3 1 Nov. 19 5 50 10 3 1 Nov.26 5 50 10 3 1 U. S. certificates of indebted- ness: Oct. 29 21 520 68 247 30 696 23 299 12,262 15,666 39,618 17,216 8,481 12,828 8,300 ! 11,301 269.434 Nov.5 21 484 67 054 30 508 23 299 12,262 15,666 39,612 17,255 8,481 12,826 8,300 | 11,300 268,047 Nov. 12 21 692 68 164 30 451 23 299 12,262 15,666 39,612 17,256 8,482 12,826 8,300 J 11,300 269,310 Nov. 19 33 057 76,129 44 550 34 299 14,262 15,665 48,895 17,286 12,826 8,300 17,399 331,154 Nov.26 24 321 70 706 44 285 23 299 12,262 15,667 39,650 17,547 12,821 8,200 16,322 293,676 Total earning assets: Oct. 29 245 182 1,095,528 227,071 285 282 131,693 158,708 552,166 140,511 94,665 139,786 90,987 1234.464 3,396,043 Nov.5 220 055 1,104,811 238,042 293,640 134,593 157,301 566,102 138,872 93,283 143,203 93,336 {238,337 3,421,575 Nov. 12 235,653 1,113,114 229,898 269,446 136,068 156,353 544,767 137,323 94,040 136,536 90,747 224,601 3,368,846 Nov. 19 231 414 1,068,897 235', 065 258,862 133,120 156,435 539,456 140,239 95^034 139,346 86,310 222,517 3,306,695 Nov. 26 220 098 1,052,000 234,900 263,215 134,673 155,219 550,687 140,234 90,664 137,171 89,634 235,222 3,303,717 li-ink premises: Oct. 29 2 098 4,102 657 1,178 1,285 623 2,142 866 603 885 1,323 231 15,993 Nov. 5 2,129 4,114 657 1,182 1,326 623 2,142 603 885 1,323 231 16,081 Nov. 12 2 203 4,114 683 1,563 1,326 623 2,142 613 885 1,328 231 16,577 Nov. 19 2,362 4,116 683 1,565 1,334 623 2,342 891 631 915 1,354 231 17,047 Nov.26 2 391 4,208 683 1,565 1,334 625 2,342 891 631 915 1,517 231 17,333 Uncollected items and other deductions from gross de- posits: Oct. 29 54,990 147,075 63,589 74,639 59,150 29,337 94,366 40,503 22,501 60,295 51,916 44,615 742,976 Nov. 5 53,755 160,037 72,179 75,414 62,095 29,190 101,465 46,451 26,925 63,629 53,341 43,479 787,960 Nov. 12 58,648 157,754 61.973 74,403 65,689 30,079 97,595 46,085 26,858 62,066 49,666 41,461 772,277 Nov. 19 57,635 155,641 6b;058 83,976 67,758 30,829 102,482 45,197 26,034 68,905 52,796 48,113 804,424 Nov.26 53,917 135,447 63,626 72,955 67,083 25,559 85,523 35,534 24,763 56,870 46,623 41,501 709,401

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1354 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. 26,1920—Continued.

[In thousands of dollars.] RESOURCES—Continued.

Phila- Kan- San Boston. New Cleve- Rich- At- Chi- St. Minne- sas York. del- land. Dallas. Fran- Total. phia. mond. lanta. cago. Louis. apolis. City. cisco.

5 per cent redemption fund against Federal Reserve Bank notes: Oct. 29 1,072 2,620 1,300 1,139 451 503 2,467 623 512 916 586 665 12,854 Nov. 5 1,072 2,616 1,300 1,139 451 507 1,798 623 386 916 586 665 12,059 Nov 12 1,072 2,597 1,300 1,139 451 503 1,665 623 573 916 586 665 12,090 Nov 19 1,072 2,609 1,300 1,139 451 491 2,059 623 465 916 586 665 12,376 Nov. 26 1,072 2,627 1,300 1,139 451 471 1,363 623 328 916 586 665 11,541 All other resources: Oct 29 537 1,022 651 320 289 216 639 390 109 263 908 359 5,703 Nov. 5 462 851 646 266 411 216 833 404 128 274 1,109 432 6,032 Nov 12 529 1,070 782 274 744 264 747 423 181 304 911 561 6,790 Nov. 19 558 859 793 282 291 198 718 436 210 315 889 481 6,030 Nov. 26 509 1,195 949 364 312 225 1,084 449 263 267 897 673 7,187 Total resources: Oct 29 507,054 1,856,957 484,412 616,878 281,661 279,106 968,222 263,255 167,828 276,380 19o,454 444,400 6,341,607 Nov. 5 506,991 1,871,252 495,551 616,978 285,497 276,018 980,426 274,127 171,621 282,705 201,397 450,873 6,413,436 Nov 12 502,153 1,875,850 487,123 617,734 288,933 274,824 955,686 268,455 171,529 271,561 197,309 445,434 6,356,591 Nov 19. . . 497,154 1,842,979 487,974 611,411 284,660 274,767 952,462 268,653 171,694 286,286 191,888 456,872 6,326,800 Nov. 26 497,477 1,815,062 487,363 615,088 286,603 267,341 950,492 260,528 164,149 268,340 189,438 442,608 6,244,489 includes bills discounted for other Federal Reserve Banks: Oct. 29 81 199 27,129 138,750 247,078 Nov 5 51 389 32 550 141 232 225,171 Nov. 12 55,414 24,503 120,266 • 200,183 Nov. 19 35,604 16 352 111 984 163,940 Nov. 26 27,217 14,760 112,106 154,083 2 Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Oct 29 3 197 10 072 93 13,362 Nov. 5 14 833 50 14,883 Nov. 12 7,000 12 736 19,736 Nov. 19 7 017 10 282 17,299 Nov. 26 437 6,998 6,917 14,352

LIABILITIES.

Capital paid in: Oct. 29 | 7,669 25,244 8,426 10,300 5,257 3,960 13,766 4,306 3,385 4,506 4,052 6,882 97,753 Nov.5 1 7,669 25,249 8,426 10,318 5,258 3,995 !13,766 4,307 3,387 4,507 4,083 6,859 97,824 Nov. 12 1 7,669 26,240 8,426 10,320 5,268 4,000 j13,777 4,308 3,388 4,507 4,083 6,861 98,847 Nov. 19 1 7,669 26,247 8,469 10,352 5,272 4,009 i13,784 4,332 3,394 4,447 4,085 6,869 98,929 Nov.26 7,669! 26,245 8,490 10,352 5,277 4,013 ;13,813 4,346 3,396 4,456 4,085 6,878 99,020 Surplus fund: Oct. 29 12,351 51,308 13,069 13,712 8,067 I 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Nov.5 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Nov. 12 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Nov. 19 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Nov.26 12,351 51,308 13,069 13,712 8,067 7,050 23,917 5,884 5,178 8,395 4,152 11,662 164,745 Government deposits: Oct. 29 1,688 4,556 2,129 1,681 438 I 765 1,920 883 1,731 851 1,125 18,754 Nov.5 3,905 14,730 3,872 3,280 863 1,162 ! 5,757 3,771 1,618 3,227 2,150 3,043 47,378 Nov. 12 1,188| 3,834 2,396 i 1,626 1,039 580 i 1,219 910 439 1,921 1,749 944 17,845 Nov. 19 768 255 947 254 1,062 1,181 ! 456 1,559 1,503 2,493 1,614 167 12,259 Nov.26 598 913 1,177 647 1,226 1,336 ! 947 2,192 1,268 2,318 1,950 1,337 15,909 Due to members—reserve ac- count: Oct.29 122,470 703,701 106,806 150,584 59,341 49,283 258,978 60,921 44,534 77,214 52,694 1119,135 1,805,661 Nov.5 120,303 683,343 110,702 154,444 59,207 46,1^8 |250,085 62,118 42,510 76,876 50,326 121,194 1,777,256 Nov. 12 120,615 712,744 112,813 150,276 55,646 47,192 249,820 63,308 46,262 78,628 49,742 114,818 1,801,864 Nov.19 115,443 688,639 113,466 150,378 .58,475 45,136 247,727 63,589 44,884 81,965 49,579 122,525 1,781,806 Nov. 26 113,602 660,024 107,433 147,838 56,908 47,190 244,075 62,116 42,732 71,747 47,277 110,832 1,711,774 Deferred availability items: Oct.29 43,428 101,358 53,373 60,874 46,709 23,308 63,562 38,283 20,309 53,460 32,470 34,673 571,807 Nov.5 44,999 110,085 60,303 59,865 51,882 23,325 76,472 44,774 24,915 59,455 40,268 34,983 631,326 Nov. 12 46,658 110,025 49,922 60,884 57,422 21,993 66,292 41,841 22,717 49,429 39,577 34,864 601,624 Nov.19 47,105 108,592 53,036 64,239 52,082 25,206 69,234 41,927 23,171 60,090 35,574 36,615 616,871 Nov.26 48,008 103,996 55,194 59,762 53,591 16,926 67,010 35,158 18,291 53,597 37,142 33,757 582,432 Other deposits, including for- eign Government credits: Oct.29 740 12,572 920 461 255 315 | 1,317 589 306 418 342 3,072 21,307 Nov.5 879 18,154 1,121 411 248 197 i 1,715 601 301 359 272 2,665 26,923 Nov. 12 550 16,869 1,242 436 305 207 | 1,353 681 246 409 315 3,095 25,708 Nov.19 832 16,352 885 586 248 216 | 1,792 566 343 479 322 3,607 26,228 Nov. 26 562 13,110 1,441 409 306 250 j 1,877 573 552 415 372 3,030 22,927 Total gross deposits: Oct. 29 168,326 822,187 103,228 212,906 107,986 73,344 324,622 101,713 66,032 132,823 86,357 158,005 2,417,529 Nov.5 170,086 826,312 175,998 218,000 112,200 70,832 1334,029 111,264 69,344 139,917 93,016 161,885 2,482,883 Nov. 12 169,011 843,472 166,373 213,222 114,412 69,972 318,684 106,740 69,664 130,387 91,383 153,721 2,447,041 Nov.19 164,148 813,838 168,334 215,457 111,867 71,739 319,209 107,641 69,901 145,027 87,089 162,914 2,437,164 Nov.26 162,770 | 778,073 165,24J 208,656 112,031 65,702 |313,909 100,039 62,843 128,077 86,741 1148,956 2,333,042

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1355

Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 29 to Nov. i S, 1920—Continued. [In thousands of dollars.] LIABILITIES—Continued.

Phila- Kan- New Cleve- Rich- At- Chi- St. Minne- sas Dallas. Total. Boston. York. del- land. mond. Louis. apolis. phia. lanta. cago. City.

Federal Reserve notes in actual i circulation: Oct. 29 296,168 876,706 273,266 352,123 146,116 .77,734 554,186 137,898 82,714 111,575 91,071 251,746 3,351,303 Nov. 5 1293,735 886,709 271,319 346,776 145,550 .76,676 556,455 138,629 83,190 i110,750 90,265 254,126 3,354,180 Nov. 12 ! 289,041 872,609 272,469 351,659 146,700 76,195 546,615 137,348 82,729 1109,161 87,797 256,662 3,328,985 Nov. 19 1288,696 869,621 271,054 342,885 144,816 .74,078 542,200 136,804 82,609 109,329 86,584 258,759 3,307,43? Nov. 26 |290,116 876,321 273,194 352,873 146,492 .72,398 544,759 136,167 82,137 108,336 84,464 258,281 3,325,53? Federal Reserve bank notes in ! circulation—net liability: i Oct. 29 ! 17,324 39,617 21,619 21,763 11,524 13,934 37,205 10,451 7,934 i 15,377 7,615 10,598 214,961 Nov. 5 ! 17,672 38,678 21,658 21,874 11,589 14,153 37,026 10,599 7,894 15,218 7,545 10,627 214,533 Nov. 12 ; 18,369 38,226 21,594 22,224 11,623 14,176 37,220 10,572 7,853 j 15,086 7,484 10,653 215,080 Nov. 19 18,434 36,897 21,673 22,276 11,630 14,267 37,339 10,512 7,798 I 14,925 7,525 10,605 213,881 Nov. 26 18.520 37,139 21,916 22,515 11,638 14,449 37,539 10,374 7,758 I 14,793 7,464 10,505 214,610 All other liabilities: i Oct. 29 5,216 41,895 6,074 2,711 3,084 14,526 ! 3,003 2,585 3,704 2,207 5,507 95,316 Nov. 5 5,478 42,996 5,081 6,298 3,312 15,233 i 3,444 2,628 3,918 2,336 5,714 99,271 Nov. 12 ! 5,712 43,995 5,192 6,597 3.431 15,473 ' 3,603 2,717 4,025 2,410 5,875 101,893 Nov. 19 5,856 45,068 5,375 6,729 3,008 3; 624 16,013 3,480 2,814 4,163 2,453 6,063 104,646 Nov. 26 ': 6,051 45,976 5,449 6,980 3,098 3,729 16,555 3,718 2,837 4,283 2,532 6,326 107,534 Total liabilities: Oct. 29 507,054 ,856,957 484,412 616,878 281,661 279,106 968,222 263,255 167,828 276,380 195,454 444,400 6,341,607 Nov. 5 506,991 .871,252 495^ 551 616,978 285,497 276,018 980,426 274,127 171,621 282,705 201,397 450,873 6,413,436 Nov. 12 502,153 .875, 850 487,123 617,734 288,933 274,824 955,686 268,455 171,529 271,561 197,309 445,434 6,356,591 Nov. 19 497,154 ,842,979 487,974 611,411 1284,660 274,767 952,462 268,653 |171,694 286,286 191,888 456,872 6,326,800 Nov. 26 497,477 ,815,062 487,363 615,088 286,603 267,341 950,492 260,528 1164,149 268,340 189,438 442,608 6,244,489 i MEMORANDA. Ratio of total reserves to net deposit and Federal Reserve noteliabilities combined—per cent: Oct. 29 49.6 39.1 51.3 51.9 45.5 40.5 40.3 40.4 39.2 40.3 39.6 44.9 43.1 Nov. 5 56.0 38.6 48.7 50.1 44.3 40.4 39.0 42.7 40.0 39.5 39.8 45.0 43.0 Nov. 12 51.1 38.3 51.1 55.2 43.3 40.3 40.2 42.0 39.2 39.9 41.7 48.1 43.6 Nov. 19 51.6 40.0 49.4 56.0 43.2 40.1 40.2 40.8 39.0 40.9 41.3 49.5 44.1 Nov. 26 55.0 40.8 49.6 56.5 43.2 40.1 40.0 41.3 39.5 40.2 40.3 44.9 44.4 Contingent liability as indorser on discounted paper, redis- counted with other Federal Reserve Banks: Oct. 29 48,000 14,275 36,122 7,050 37,305 26,603 44,895 32,828 247,078 Nov. 5 44,700 10,000 37,508 3,000 34,433 25,023 41,878 28,629 i 225,171 Nov. 12 38,000 9,520 35,141 23,680 26,250 40,503 27,089 200,183 Nov. 19 14,750 10,000 38,845 16.739 25,830 29,969 27,807 I 163,940 Nov.26 10,150 10,000 40,216 12;793 25,860 28,464 26,600 ' 154,083 Bankers' acceptances sold to other Federal Reserve Banks without indorsement: Oct. 29 13,362 13,362 Nov. 5 14,883 14,883 Nov. 12 19,736 19,736 Nov. 19 17,299 17,299 Nov.26 14,352 14,352 Contingent liability on bills purchased for foreign corre- spondents: Oct. 29 , 1,168 6,080 1,280 1,312 784 576 1,904 752 432 768 416 ; 736 16,208 Nov. 5 1,168 6,078 1,280 1,312 784 576 1,904 752 432 768 416 736 16,206 Nov. 12 1,168 6,076 1,280 1,312 784 576 1,904 752 432 768 416 736 16,204 Nov. 19 1,168 6,072 1,280 1,312 784 576 1,904 752 432 768 416 736 16,200 Nov. 26 1,168 6,071 1,280 1,312 784 576 1,904 752 432 768 416 I 736 16,199

Maturities of bills discounted and bought, also of Treasury certificates of indebtedness held by the 12 Federal Reserve Banks combined. [In thousands of dollars.] Within 15 16 to 30 31 to 60 61 to 90 Over 90 days. days. days. days. days. Total.

Bills discounted: Oct. 29 1,591,408 300,671 512,062 368,446 28,710 2,801,297 Nov. 5 1 635,658 277,975 504,721 375,876 32,595 2,826,825 Nov. 12 1 599,696 301,964 508,238 338,166 36,686 2,784,750 Nov. 19 1,567,959 306,981 515,532 234,289 48,613 2,673,374 Nov.26 1,650,801 296,096 501,627 235,181 51,695 2,735,400 Bills bought: Oct. 29 115,046 73,439 82,560 27,330 298,375 Nov. 5 { 131,993 68,556 76,589 22,631 299,769 Nov. 12 119.593 64,595 83,612 20,054 287,854 Nov. 19 ! 97,488 62,281 98,948 18,510 275,227 Nov. 26 ! 78,663 62,111 90,601 16,328 247,703 United States certificates of indebtedness: j Oct. 29 15,370 8,100 28,883 14,135 202,946 269,434 Nov. 5 1 12,178 12,597 26,419 10,927 205,926 268,047 Nov. 12 ! 16,592 12,499 24,850 8,947 206,422 269,310 Nov. 19 j 80,051 12.922 12,411 4,921 220,849 331,154 Nov. 26 35.027 22', 045 12,385 3,920 220,299 293.676

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1356 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

FEDERAL RESERVE NOTES. Federal Reserve Agents' accounts at close of business on Fridays, Oct. 29 to Nov. 26, 1920.

[In thousands of dollars.]

Phila- New Cleve- ! Rich- Chi- St. Minne- Kansas San Boston. York. del- land, f mond. Atlanta. Dallas. Fran- Total. phia. cago. Louis. polis. City. cisco.

RESOURCES. Federal Resarve notes on hand: Oct. 29 117,300 141,000 35,280 30,000! 23,339 58,875 60, 600 19,380 7,645! 7,560 12,790 4,1 518,649 Nov. 5 117,300 139,800 34,280 30,000! 26,159 59,535 129,160 16,r" 12,805! 7,360 12,690 4,1 590,749 Nov. 12 120,500 139,800 35,680 32,0001 27,519 61,295 132,040 16,! 12,265 8,460 13,470 4,; 604,389 Nov. 19 116,500 143,000 33,680 32,200| 27,019 63,565 126,200 16,220 11,605 7,640 14,320 4,380 593,329 Nov. 26 110,200 168,000 39, — 30,100 25,329 62,195 128,360 18,220 11,505) 7.340 14,320 3,380 618, 629 Federal Reserve notes outstand- ing: Oct.29 312,492 986,339 281,386 370,252! 151,4791 183,492 632,736 156.370 84,377: 117,457 95,369 291,4213,666,170 Nov. 5 310,024 991,176 282,705 369,0131 152,045 182,231 630,202 157,521 84,550i 116,417 94,497 289,067 3,659,448 Nov. 12 , 303,238 999,449j 285,706 370,756J 151,816 180,521 629,958) 156,014 84,446! 114,473 92,758 290,898 3,660,033 Nov. 19 302,548 991,577 287,073 369,866 151,414 179,461 637,057 156,155 84,601! 114,661 90,469 292,606 3,657,488 Nov. 26 303,243 996,447i 284,598 371,065 151,585 177,209 632,1751 155,382 83,756 113,777 89,261 294,783 3,653,281 Collateral security for Federal Reserve notes outstanding: Gold and gold certificates— Oct. 29 5,900 209,608 32,025 3,500 3,860 13,052 9,831 277,776 Nov. 5 , 5,900 209,608 32,025 3,500 5,860 13,052 7,831 277,776 Nov.12 5,900 209,608 32,025 3,500 5,8601 13,052 6,831 276,776 Nov. 19 5,900 209,608 32,005 3,500 6,860! 13,052 5,831 276,756 Nov. 26 5,900 209,608 32,005 3,500 6,860 13,052 5,331 276,256 Gold redemption fund— Oct. 29 19,805 8,12, 15,389 20,040! 3,104 3,168 8,236 3,925! l,599i 3,960 5,995 13,876 107,222 Nov. 5 17,337 17,312 17,708 20,601 1,130 4,627 8,263 3,776! 932! 2,720 5,023 19,672 119,101 Nov.12 18,750 16,143 15,809 21,044 2,901 2,717 8,858 3,789! 1,288! 3,877 6,064 16,863 118,103 Nov. 19 19,061 15,394 18,277 21,454 3,499 2,926 7,877 4,129 1,783! 2,744 6,624 15,856 119,624 Nov. 26 17,45ft 14,424 15,802 19,353 1,480 2,684 8,955 4,077 2,038| 3,561 5,917 13,610 109,357 Gold settlement fund—Fed- eral Reserve Board— Oct.29 105,000 45,000 101,389 90,000 38,500 58,000 168,145 41,031 12,200! 37,360 12,734 80,761 790,120 Nov.5. 105,000 25,000 101,389 90,000 38,500 56,000 164.144 39,531 12,200i 37,360 14,734 71,611 755,469 Nov. 12 110,000 25,000 101,389 100,000l 48,500 57,0001 160.145 38,531 12,200! 35,360 13,734 80,951 782,810 Nov.19 100,000 25,000 101,389 110,0001 45,500 57,000 176,145 37,931 11,200 38,360 11,734 95,107 809,366 Nov. 26 100,000 25,000 106,389 110,000 45,500 55,000 179,14* 37,131 11,200! 36,360 11,734 94,609 812,068 Eligible paper- Amount required— I Oct. 29 181,787 723,606 167, 228,1871 109,875 118,824 456,355 107,554 57,526 76,137 66,809 196,784 2,491,052 Nov.5 181,787 739,256 163,608 226,387 112,415 118,104 457,795 108,354 58,366 76,337 66,909 197,784*2,507,102 Nov. 12 ' 168,588 748,698 168,508 217,687 100,415 117,304 460,955 107,834 57,906 75,236 6.6,129 193,084]2,482,344 Nov. 19 177,587 741,575 167,407 206,407 102,415 116,035| 453,035 107,235 58,566 73,557 66,280 181,643 2,451,742 Nov. 26 179,887 747,415 162,407 209,707 104,605 116,025 444,075 107,314 57,466 73,856 66,279 186,564 2,455,600 E xcess amount held— Oct. 29 41,315 269,094 5,558 24,683 6,395 24,070 51,650 14,329 12,330 41,679 11,899 6,592 509,594 Nov.5 16,226 266,112 25,157 36,230 7,164 23,391 64,104 11,972| 14,814 45,057 14,148 16,069 541,444 Nov. 12 44,816 259,488 3,229 24,952 19,191 23,250 39,646 11,029 10,202 39,474 12,339 4,303 491,919 Nov. 19 20,213 212,335 9,191 11,755 14,610 24,601 32,925 14,438 6,591 44,095 7,751 9,654 408,159 Nov. 26 15,363 195,049 7,676 24,263 11,225 23,391 62,431 13,973. 6,972 41,589 11,076 21,055 434,063 Total resources: Oct. 29 783,599 2,382,772 609,610 795,187 332,692 449,9291,377,722 346,4491 188,729 284,153 215,427 594,314 8,360,583 Nov. 5 753,574 2,388,264 625,847 804,256J 337,413 447,388 1,453, 668 343,994! 196,719 285,251 215,832 598,883 8,451,089 Nov.12 771,792 2,398,186 610,321 798,4641 350,342| 445,587 1,431,602 340,037! 191,359 276,880 211,325 590,479 8,416,374 Nov. 19 741,809 2,338,489 617,017 783,6871 344,457 444,088 1,433,239 342,968j 187,398 281,057 203,009 599,246 8,316,464 Nov. 26 732,049 2,355,943 616,552 796,493 339,724 440,0041,455,141 342,957! 185,989 276,483 203,918 614,0018,359,254 LIABILITIES. Federal Reserve notes received from Comptroller of the Cur- rency—gross: Oct. 29 726, 400 21,, 308,300 660,380 690,520 380,480 405,98011,161,180 383,400} 181,720 262,020 196,160 524,960 71,;881,500 Nov.5 726, 400 22,314,90! 0 660,380 691,720 385,840! 406,420 i 1,231,180 384,300 187,720 262,020 196,160 525,760 71,.972,800 Nov. 12 726, 40022,326,50: 0 666,680 697,020 388,200 408,380J 1,237,220 384,780 187,720 262,020! 196,160 530,760 85,011,84, 0 Nov.19 726, 40022,330,20: 0 668,580 699,920 389,700| 408,380 1,243,460 385,820 187,720 262,520' 196,160 534 320 85,033,18; 0 Nov. 26 727, 400 22,362,40' 0 674,580 701,120 390,200! 410,00011,246,660 389,100 187,720 262,520 196,160 538,240&5,086,100 Less amounts returned for de- struction: Oct. 29. -..., 296,6081,180,961 340,714 290,268 205,662! 163,613 467,844 207,650; 89,698 137,003 88,001 228,659,3,696,681 Nov.5 299,076 1,183,924 343,395 292,707 207,636 164,654: 471,818 209,799 90,365 138,243 88,973 232,0133,722,603 Nov. 12 -. 302,662 1,187,251 345,294 294,264 208,855 166,564| 475,2^, 2 211,788,!! 91,009 139,087 89; 932 235,482-3,747,418 Nov. 19 307,352 1,195,623 347,827 297,854 211,267 , 480,203 213,445213445! 91,514 168,354; 140,219 91,371 237,334i3,782,363 Nov. 23 313,957jl,197,953 350,302 299,955 213,286 486,125 215,498! 92,459 141,403 92,579 240,077!3,814,190 Net amount of Federal Reserve 170,596 notes rec3ived from Comptrol- ler of the Currency: Oct. 29 .* 429,792 1,127,339 319,665 400,252! 174,818 242,367 693,336 175,750! 92,022 125,017! 108,159 296,3014,184,819 Nov.5 427,324 1,130,976 316,985 399,013! 178,204 241,7661 759,362 174,5011 97,355 123,777 107,187 293, 747 4,250,197 Nov.12 423,7381,139,249 321,385 402,756| 179,335 241,81~" ~"6' 761,998 172,994! 96,711 122,933 106,228 295,278 4,264,422 Nov. 19 419,0481,134,577 320, 753 402,066! 178,433 240,026| i vjo, iu i iHijOio 16,20ll^ «vy6, XMM122,30. VV/1 XUl104,78^ « KJXJ9 296,98614,250,817 Nov.28 413,443 1,164,447 324,278 401,165| 176,914 239,4041 760,535 173,602! 95,26l| 121,117 103,581 298,163J4,271,910

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1357

Federal Reserve Agents'9 accounts at close of business on Fridays, Oct. 29 to Nov.. 26, 1920—Continued.

[In thousands of dollars.]

Phila- San New Cleve- Rich- Chi- St. Minne- Kansas AtlantaAtlarita Total. Boston. York. del- land. mond. - Dallas. Fran- phia. cago. Louis. polis. City. cisco.

LIABILITIES—continued. Collateral received from Federal Reserve Bank: Gold— Oct. 29 130,705 262,733 116,778 142,065 41,604J 64> 668 176,381 48, 816 26,851 41,320 28,560! 94,637 1,175,118 Nov. 5 128,257 251,920 119,097 142,626j 39. 630 64,127 172,407 49,167 26,184 40,080 27,588 91,283 1,152,346 Nov. 12 134, 650 250,751 117,198 153,069 5i; 401 63,21' 169,003 48,180 26,540 39,237 26,6291 97,814 1,177,689 Nov. 19 124,961 250,002 119,666 163,459 48,999 63,426 184,022 48,920 26,035 41,104 24,189 110,9631,205,746 Nov. 26 123,356 249,032 122,191 161,358 46,980! 61,184 188,100 48,068 26,290 39,921! 22,982| 108,2191,197,681 Eligible paper— Oct. 29 223,102 992,700 173,166 252,870! 116,270 142,894 508,005 121,883 69,856 117,816 78,708, 203,37203, 6 3,000,646 Nov. 5 198,013 ,005,368 189, 765 262,617! 119,579 141,495 521,899 120,326 73,180 121,394 81,057 213, 853 3,048,543' 6 Nov. 12 213,404 1,008,186 171,737 242,6391 119,606 140,554 500,601 118,863 68,108 114,710 78; 468! 197; 387 "!,974,262: 3 Nov. 19 197,800 953,910 176,598 218,162, 117,025! 140,636 485,960 121,673) 65,157 117,652 74,03l| 191, 297 2!!, 859,901 Nov. 26 " 195,250 942,464 170,083 233,970 115,830 139,416 506,506 121,287 64,438 115,445! 77,355 207, 619 21,889,66; 3 Total liabilities: Oct. 29 783,599 2,382,772 609,610 795,187! 332,692' 449,929 1,377,722j 346,449 188,729 284,153! 215,427! 594, 314 8!,, 360,583 Nov.5 753,574f2,388,264 625,847 804,256! 337,4131 447,38811,453,668 343,994? 196,719 285,251 215,832 598, 883 85,451,08, 9 Nov. 12 771,792 2,398,186 610,321 798,464 350,342 445,587j 1,431,6021 340,037 191,359 276,880! 211,325 590, 479 85,416,37, 4 Nov. 19 741,809 2,338,489 617,017| 783; 687! 344,457! 444,0881,433,239 342,988 187,398 281,057! 203,009 599, 246 85,316,46; 4 Nov. 26 732,049 2,355,943 616,552 795,493! 339,724 440,004; 1,455,141 342,957 185,989 276,483| 203,918 614,0018.5,359,254

CONDITION OF MEMBER BANKS IN LEADING CITIES. Substantial liquidation of principal loan ac- duction in the banks' own loan and deposit ac- counts, as reflected in an aggregate reduction counts. of nearly 500 millions in total loans and invest- Government credit operations, especially ments of about 825 member banks in leading about the end of the period under review, were cities, is the most salient feature of banking de- quite considerable in volume but did not differ velopment for the weeks between October 15 in character from those described in previous and November 19. Net deposits show a com- reviews and apparently affected but little the mensurate reduction, while liquidation of bor- general situation. In the following exhibit rowings from the Federal Reserve Banks are shown the weekly changes in the principal set in only later during the period and didasset and liability items of all reporting mem- not attain the same proportion as the re-ber banks for the five weeks under review.

Resources and liabilities of member banks in leading cities on Fridays from Oct. 15 to Nov. 19, 1920.

[In millions of dollars.]

Oct. 15. Oct. 22. Oct. 29. Nov. 5. Nov. 12. Nov. 19.

NlTmbp.r of banks 822 823 823 823 825 824 United States bonds 877 878 876 879' 880 885 United States Victory notes ... 191 193 193 194 195 195 United States certificates of indebtedness 362 314 295 285 278 345

Total United States securities owned .. 1 430 1,385 1,364 1, 358 1,353 1,425 Laans secured by Government war obligations, including rediscounts with Federal Reserve Bank 924 915 912 911 909 894 Loans secured by corporate stocks and bonds 3 162 3,106 3,142 3, 087 3,049 3,044 All other loans and investments, including rediscounts with Federal Reserve Bank 11 768 11,697 11,599 11, 579 11,521 11,430 Total bans and investments, including rediscounts with Federal Reserve Bank 17 284 17,103 17,017 16, 935 16 ,832 16,793 Reserve balance with Federal Reserve Bank 1 422 1,333 1,365 1, 335 1,370 1,344 Cash in vault 381 377 367 387 384 378 Net demand deposits. .... 11,473 11,241 11,172 11, 094 11,122 10,992 Time deposits 2,808 2,815 2,805 817 2,810 2,786 Government deposits 188 152 81 45 30 173

Bills discounted and reliscounted with Federal Reserve Bank, total.. 2,249 2,204 2,244 2, 278 2,228 2,119 Secured by Government war obligations 928 930 939 942 905 884 Allother 1,321 1,274 1,315 1, 336 1,323 1,235

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1358 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

As against an increase of over 11 millions in November 15 certificate issue, these deposits the holdings of United States war securities were replenished to the extent of 173 millions. proper, i. e., Liberty bonds and Victory notes, Other demand deposits (net) of the reporting the reporting banks show a reduction of 16.4 banks followed a downward course nearly in millions in their holdings of Treasury certifi- keeping with loans and investments, the reduc- cates, notwithstanding tne substantial increase tion of this item for the five weeks being over in these holdings shown on November 19 follow- 480 millions. Time deposits show but slight ing the most recent certificate issue. For the fluctuation during the first four weeks and at member banks in New York City a reduction the close of the period were 22 millions below for the five weeks .of over 2 millions in Liberty the October 15 total. For the New York City bonds and Victory notes as against an increase banks moderate reductions in Government and of over 12 millions in Treasury certificates are time deposits and a decline of 255 millions in noted. net demand deposits are shown. All classes of loans show considerable reduc- Accommodation of all reporting institutions tions—loans supported by Government obliga- at the Federal Reserve Banks during the first tions by about 30 millions, loans supported by three weeks under review fluctuated within corporate securities by about 118 millions, and moderate limits, reaching a high of 2,278 mil- commercial loans and discounts (composing the lions on November 5. During the following bulk of the item "All other loans and invest- two weeks the banks were able to reduce their ments7') by about 338 millions. Total loans loans from their reserve banks by 159 millions, and investments, accordingly, on November 19 or to 12.6 per cent of their total loans and stood at 16,793 millions, or about 490 millions investments, compared with 13 per cent on below the total shown five weeks previous. October 15. For the New York City banks Member banks in New York City show larger this ratio remained practically unchanged at liquidation of loans collateraled by Government slightly over 14.5 per cent. and corporate securities and a reduction of over Reserve balances show a sharp decline of over 135 millions in other loans and investments, 89 millions for the week ending October 22, this curtailment of loans secured by stocks and decline corresponding to reductions of over 181 bonds reflecting largely the heavy selling of millions in total loans and investments, of 232 stock exchange securities during November, millions in net demand deposits, and of 45 mil- while other loans and investments of the New lions in the bank's borrowings from the Federal York banks fell off more heavily during the last Reserve Banks. Fluctuations during the sub- week in October and the week ending Novem- sequent weeks were within narrower limits, the ber 19. The ratio of combined holdings of November 19 total of the item, 1,344 millions, United States war securities and loans sup- being about 78 millions below the October 15 ported by such securities to total loans and in- total. Cash in vault at the close of the period vestments shows a rise from about 12 to 12.2 stood at 378 millions, an increase of 7 millions per cent for all reporting banks and from about since the middle of October. Reserve balances 15 to 15.3 per cent for member banks in New of the New York members show a decline of 73 York City. millions for the week ending October 22, the Government deposits show a gradual decline total shown on that date, 567 millions, being a from over 188 millions on October 15 to less low record for the year. Their cash holdings than 30 millions on November 12. On the fol- show an increase of about 2.5 millions for the lowing Friday, following the allotment of the period. Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, 1920. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars.]

New- Cleve- Rich- At- St. Minne- Kansas San Boston. Chicago. Louis. apolis. Dallas. Fran- Total. York. land. mond. lanta. City. cisco.

Number of reporting banks: Oct. 22 115 81 46 108 35 37 83 51 68 823 Oct. 29 115 81 46 108 35 37 83 51 68 823 Nov. 5 115 81 46 108 35 37 83 51 68 823 Nov. 12 115 81 46 108 35 38 83 51 68 825 Nov. 19 115 80 46 108 35 38 83 51 68 824 United States bonds to secure circulation: Oct. 22 12,609 46,663 11,347 42,295 28,908 14,380 21,550 16,623 7,371 14,701 19,573 32,648 268,668 Oct. 29 12,610 46,663 11,347 42,400 28,908 14,455 21,552 16,623 7,371 14,701 19,573 32,648 268,851 Nov. 5 12,610 46,959 11,347 42,428 29,008 14,530 21,551 16,422 7,370 14,751 19,573 32,648 269,197 Nov. 12 12,610 47,459 11,347 42,428 29,008 14,530 21,551 16,432 7,371 14,751 19,573 32,623 269,683 Nov. 19 12,610 47,459 11,347 42,440 28,958 14,580 21,548 16,422 7,371 14,751 19,573 32,648 269,707

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1359

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, 1920—Continued. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.]

New Phila- St. j Minne- Kansas San Boston. del- Chicago. Dallas. Fran- Total. York. phia. Louis. apolis. City. cisco.

Other United States bonds, including Lib- erty bonds: Oct. 22 18,255 253,113 29,076 62,107 33,429 28,111 51,722 13,217 23,812 22,354 64,114 609,204 Oct. 29 19,425 248,439 30,122 61,179 33,453 28,080 51,313 13,533 9,877 23,742 22,451 65,772 607,386 Nov. 5 19,622 250,278 29,543 60,995 33,796 28,298 51,696 13,353 9,883 23,519 22,666 66,438 610,087 Nov. 12 19,174 252,726 29,669 60,967 33,529 27,969 51,926 13,373 9,816 23,509 21,981 65,717 610,356 Nov. 19 19,801 249,924 30,194 61,620 33,903 28,002 54,395 13,577 10,073 23,448 22,451 67,354 614,742 United States Victory notes: Oct. 22 5,938 83,426 9,168 18,861 7,048 4,033 39,054 1,025 5,004 3,181 14,067 193,494 Oct. 29 5,838 83,500 9,218 19,064 6,887 4,019 38,574 2,705 1,069 5,097 3,076 14,339 193,386 Nov. 5 5,840 83,440 9,301 19,182 6,819 3,996 38,640 2,720 1,056 5,186 3,072 14,375 193,627 Nov. 12 5,801 84,105 9,425 19,217 6,856 4,023 38,835 2,735 1,053 5,240 3,191 14,736 195,217 Nov. 19 5,850 84,256 9,791 19,389 6,754 3,960 38,408 2,721 1,058 5,170 3,224 14,915 195,496 United States certifi- cates of indebtedness: Oct. 22 21,666 152,597 16,115 15,355 7,234 6,706 53,289 3,842 2,028 7,233 5,009 22,798 313,872 Oct. 29 15,526 147,242 13,774 14,014 7,118 6,624 51,275 3,695 1,923 6,803 4,980 22,019 294,993 Nov. 5 16,101 142,750 13,514 13,300 7,094 6,520 46,311 3,853 2,010 6,729 5,379 21,662 285,223 Nov.12 15,416 137,128 13,280 12,111 7,052 6,456 46,917 4,077 1,855 6,709 5,206 21,847 278,054 Nov. 19 19,911 179,229 16,923 16,593 7,822 6,754 52,154 4,687 1,636 7,166 5,964 26,203 345,402 Total United States securities owned: Oct. 22 58,468 535,799 65,706 138,618 76,619 53,230 165,615 36,371 20,318 50,750 50,117 133,627 1,385,238 Oct. 29 53,399 525,844 64,461 136,657 76,366 53,178 162,714 36,556 20,240 50,343 50,080 134,778 1,364,616 Nov. 5 54,173 523,427 63,705 135,905 76 717 53,344 158,198 36,348 20,319 50,185 50,690 135,123 1,358,134 Nov. 12 53,001 521,418 63,721 134,723 76,445 52,978 159,229 36,617 20,095 50,209 49,951 134,923 1,353,310 Nov. 19 58,172 560,868 68,255 140,402 77; 437 53,296 166,505 37,407 20,138 50,535 51,212 141,120 1,425,347 Loans secured by Gov- ernment war obliga- tions, including re- discounts with Fed- eral Reserve Bank: Oct. 22 47,384 451,223 70,896 70,429 29,895 32,036 90,293 31,694 15,802 29,087 10,828 34,840 914,407 Oct. 29 46,982 438,565 76,945 69,478 30,024 31,423 95,441 32,232 16,569 29,381 10,284 34,224 911,548 Nov. 5 46,924 438,890 75,995 70,985 30,796 31,385 92,635 31,743 17,224 30,407 10,029 34,155 911,168 Nov. 12 46,200 438,883 75,775 68,892 29,844 31,845 95,280 31,940 17,011 30,492 9,721 32,819 908,702 Nov. 19 45,825 422,170 74,017 68,443 29,950 31,066 96,858 32,854 17,053 31,311 10,558 33,807 893,912 Loans secured by stocks and bonds other than United States securities: Oct. 22 194,377 1,311,665 214,341 328,673 108,188 59,680 453,409 138,584 31,150 80,918 39,450 145,462 3,105,903 Oct. 29 197,680 1,359,100 212,864 327,329 108,747 58,802 449,315 127,442 30,983 82,000 40,637 147,077 3,141,976 Nov.5 198,136 1,298,701 212,566 330,534 113,501 58,752 449,040 127,651 31,116 81,142 39,944 146,431 3,087,514 Nov. 12 196,642 1,267,917 211,520 329,013 114,285 59,104 445,905 127,261 31,897 79,824 37,698 147,952 3,049,018 Nov. 19 197,555 1,243,662 214,695 331,465 113,409 60,608 452,611 127,283 33,832 82,727 37,920 148,244 3,044,011 All other loans and in- vestments, including rediscounts with Fed- eral Reserve Bank: Oct. 22 817,689 4,170,229 590,076 979,530 407,911 427,738 1,807,573 409,180 298,519 520,755 272,147 995,965 11,697,312 Oct. 29 816,725 4,087,314 588,161 983,644 403,293 425,437 1,800,459 407,392 298,941 528,395 267,757 991,758 11,599,276 Nov.5 815,386 4,078,657 591,455 988,557 396,980 423,670 1,795,207 408,439 301,638 528,307 265,021 985,203 11,578,520 Nov. 12 804,741 4,076,341 590,315 975,869 395,628 408,914 1,784,561 399,692 302,499 526,599 264,757 990,726 11,520,642 Nov. 19 809,389 4,041,933 -"••,521 972,969 388,840 412,904 1,754,087 395,614 297;986 514,276 260,095 997,690 11,430,304 Total loans and invest- ments, including re- discounts with Fed- eral Reserve Bank: Oct. 22 1,117,918 6,468,916 941,019 1,517,250 622,613 572,684 2,516,890 615,829 365,789 681,510 372,548 1,309,894 17,102,860 Oct. 29 1,114,786 6,410,823 942,431 1,517,108 618,430 568,840 2,507,929 603,622 366,733 690,119 368,758 1,307,837 17,017,416 Nov.5 1 114,619 6 339,675 943,721 1,525,981 617,994 567,151 2,495,080 604,181 370,297 690,041 365,684 1,300,912 16,935,336 Nov. 12 1,100,584 6,304,559 941,331 1,508,497 616,202 552,841 12,484,975 595,510 371,502 687,124 362,127 1,306,420 16,831,672 Nov. 19 1,110,941 6,268,633 941,488 1,513,279 "~\636 557,874 2,470,061 593,158 369,009 678,849 359,785 1,320,861 16,793,574 Reserve balances with Federal Reserve Bank: Oct. 22 84,098 612,410 70,501 104,007 35,840 28,823 186,066 38,449 17,372 44,304 25,482 85,863 1,333,215 Oct. 29 84,018 645,594 65,512 104,159 36,700 32,052 189,752 37,336 20,185 41,762 24,539 83,613 1,365,222 Nov.5 82,266 619,656 69,112 105,753 35,323 28,852 186,642 38,231 18,084 43,610 24,565 83,141 1,335,235 Nov. 12 81,464 654,911 72,093 101,398 33,562 29,594 185,061 40,350 21,367 45,128 21,592 I 83,408 1,369,928 Nov. 19 80,221 629,783 71,606 101,668 34,826 27,900 182,324 40,303 20,567 48,364 24,345 I 82,044 1,343,951 Cash in vault: Oct. 22 26,763 121,021 18,010 38,058 18,583 13,942 66,358 10,087 9,528 15,100 12,680 27,361 377,491 Oct. 29 24,796 116,776 18,719 36,088 17,570 14,507 65,223 9,813 9,258 15,755 12,054 26,438 366,997 Nov.5 25,343 125,852 18,901 38,962 18,708 13, 908 72,477 10,088 9,348 15,294 12,207 26,323 387,411 Nov. 12 25,172 125,210 19,478 35,859 18,969 13,840 68,743 10,066 9,485 15,197 13,547 27,972 383,538 Nov. 19 25,369 124,482 19,633 38,320 18,295 13,441 66,563 9,584 14,681 11,640 26,808 378,224 Net demand deposits on which reserve is computed: Oct. 22 848,232 5,012,334 698,017 956,753 339,003 249,829 !l,379,715 300,495 187,998 ;394,038 226,793 647,381 11,240,588 Oct29 832,298 4,993,980 684,743 950,397 339,698 246,026 11,370,489 298,192 196,702 391,723 [224,172 643,581 11,172,001 Nov. 5 819,986 4,928,657 689,300 962,009 339,937 245,800 1,356,189 300,586 195,684 '394,927 1219,877 641,352 11,094,304 Nov. 12 819,019 4,915,610 694,716 947,750 1339,142 249,467 1,363,660 301,465 198,375 1408,221 1224,639 659,881 11,121,945 Nov.19 797,313 4,876,940 685,316 941,389 !335,318 245,737 11,348,244 |304,857 jl90,272 i400,373 J221,474 645,040 10,992,273

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1360 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, 1920—Continued. 1. ALL REPORTING MEMBER BANKS—Continued. [In thousands of dollars.]

New Philadel- Cleve- Ricrj- At- St. Minne- Kansas San Boston. York. Chicago. Dallas. Fran- Total. phia. land. mond. lanta. Louis. apolis. City. cisco.

Time deposits: Oct22 159,158 474,118 39,712 380,379 1106,199 1148,479 636,621 128,767 68,747 55,664 519,727 2,814,559 Oct. 29 162,445 458,556 39,244 382,012 107,644 1148,183 634,764 129,235 68, 733 98,213 56,302 519,916 2,805,247 Nov. 5 164,203 458,284 39,896 383,050 108,708 ! 148,326 637,848 130,283 68,470 99,029 57,109 521,389 2,816,595 Nov.12 153,504 455,883 39,711 385,045 ! 108,696 1149,888 638,514 129,563 68,747 99,359 57,236 523,794 2,809,940 Nov. 19 133,107 452,475 39,564 386,413 i 107,955 |K0,704 639,184 128,042 68,553 100,076 57,638 522,334 2,786,045 Government deposits: Oct. 22 11,949 73,892 15,593 15,716 2,396 1,345 13,661 3,661 1,202 3,533 1,676 7,225 151,849 Oct. 29 7,649 30,900 10,363 10,522 1,422 968 8,773 2,045 492 2,238 1,196 4,163 80,731 Nov. 5 4,286 17,372 5,819 5,714 917 653 4,951 1,139 276 1,256 670 2,359 45,412 Nov. 12 2,138 8,677 2,899 9,474 528 381 2,451 571 137 632 456 1,181 29,525 Nov.19 13,524 75,664 11,541 24,754 2,818 1,257 18,893 6,500 2,766 2,170 1,605 11,724 173,216 Bills payable with Fed- eral Reserve Bank: Secured by United States war obli- gations— Oct. 22 23,411 352,831 42,445 13,960 29,084 30,603 82,981 21,582 6,071 22,846 17,345 31,493 674,652 Oct. 29 23,038 347,740 42,482 18,996 26 583 32,145 81,132 21,688 5,751 24,130 19,306 29,678 672,669 Nov. 5 26,333 345,251 44,422 27,421 26, 118 32,115 80,496 22,087 5,393 23,856 20,402 31,303 685,197 Nov. 12 28,289 314,123 43,253 26,553 30 688 29,133 79,781 22,575 5,899 22,750 18,710 26,592 648,346 Nov.19 26,942 309,913 47,646 18,956 30,014 31,572 83,524 22,704 5,516 18,864 16,144 21,987 633,782 All other— Oct. 22 36 756 533 1,295 85 2,705 Oct. 29 36 600 721 433 265 85 2,140 Nov.5 36 918 150 325 270 1,699 Nov.12 , 36 807 450 325 320 1,938 Nov. 19 510 668 564 25 185 1,988 Bills rediscounted with Federal Reserve Bank: Secured by United States war obli- I gations— Oct. 22 12,314 140,673 34,385 9,615 4,674 10,959 16,602 1,886 7,771 2,461 4,711 254,915 Oct. 29 13,062 138,629 35,765 10,613 4,607 10,735 16,511 8,761 2,637 8,431 2,037 4,887 256,675 Nov.5 15,182 139,768 37,082 8,385 4,471 10,857 15,131 7,969 2,900 9,146 1,481 4,409 256,781 Nov. 12 16,316 139,516 37,325 8,676 4,160 10,450 14,507 7,982 2,929 9,065 1,720 4,361 | 257,007 Nov.19 15,731 131,658 36,864 ! 8,382 3,891 10,572 16,133 2,832 1,718 4,497 | 250,056 All other— Oct. 22 45,755 423,517 27,966 I 40,397 46,264 76,839 275,164 85,460 66,607 83,267 29,798 70,390 1,271,424 Oct. 29 52,354 459,879 35,799 38,505 44', 924 76,756 270,132 84,090 65,742 83,689 29,133 71,775 1,312,778 Nov.5 56,392 465,052 33,564 38,000 45,931 75,262 282,353 85,107 64,477 85,175 27,962 75,483 1,334,758 Nov. 12 59,687 498,176 34,747 38,044 44,378 70,865 262,469 70,748 66,110 77,959 26,700 71,101 1,320,984 Nov. 19 68,961 432,582 32,025 35,304 39,736 71,231 247,350 67,463 66,789 75,416 25,252 71,319 1,233,428

2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. [In thousands of dollars.]

Number of reporting banks: Oct. 22 24 72 I 12 8 51 13 19 8 285 Oct.29 24 72 ; 12 ! 8 51 13 19 8 285 Nov.5 24 72 ! 12 i 8 51 13 19 8 285 Nov. 12 24 72 I 13 8 51 13 19 8 287 Nov.19 24 72 i 13 8 51 13 19 8 287 United States bonds to secure circulation: Oct.22 2,281 36,966 7,337 3,671 2,776 3,100 1,439 9,993 2,791 4,276 4,560 16,650 95,840 Oct.29 | 2,281 36,966 7,337 3,671 2,776 3,100 1,440 9,993 2,791 4,276 4,560 16,650 95,841 Nov.5 1 2,281 37,362 7,337 3,671 2,776 3,100 1,439 9,792 2,791 4,276 4,560 16,650 96,035 Nov.12 | 2,281 37,862 7,337 3,671 2,776 3,100 1,439 9,802 2,791 4,276 4,560 16,650 96,545 Nov. 19 | 2,281 37,862 7,337 3,671 | 2,776 3,100 1,438 9,792 2,791 4,276 4,560 16,650 96,534 Other United States bonds, including Lib- erty bonds: Oct.22 6,800 221,006 22,203 7,759 4,685 1,537 16,484 5,270 1,900 8,228 6,375 38,854 341,101 Oct.29 6,867 216,486 23,251 7,756 4,696 1,537 16,465 5,377 1,885 8,190 6,552 39,097 338,159 Nov. 5 1 6,940 218,375 22,672 7,786 4,696 1,537 17,001 5,163 1,905 8,180 6,772 41,070 342,097 Nov.12 1 6,018 220,392 22,764 7,781 4,685 1,537 17,223 5,128 1,827 8,186 6,443 40,427 | 342,411 Nov.19 i 6,636 217,399 23,131 7,776 4,685 1,537 18,023 5,309 1,992 8,133 6,426 41,730 342,777 United States Victory notes: i Oct.22 1 561 74,034 6,649 2,333 153 176 11,084 536 216 2,522 860 5,966 105,090 Oct.29 1 461 74,010 6,696 2,339 153 176 11,174 547 216 2,627 758 6,068 105,225 Nov.5 i 464 73,934 6,708 2,338 153 175 11,166 547 221 2,639 758 5,843 104,946 Nov.12 ! 426 74,600 6,828 2,338 153 175 11,491 556 216 2,665 868 6,053 106,369 Nov.19 1 472 74,628 7,023 2,338 153 175 11,807 528 221 2,681 905 6,145 107,076 United States certifi- j cates of indebtedness: I Oct.22 ! 11,143 137,753 14,816 1,646 541 532 18,377 2,654 477 2,574 1,356 12,628 204,497 Oct.29 i 5,796 132,558 12,506 1,438 530 532 17,745 2,580 563 2,119 1,296 11,757 189,420 Nov.5 | 6,680 128,188 12,248 1,392 530 507 15,836 2,876 660 2,070 1,540 11,641 184,168 Nov.12 6,854 122,620 11,996 1,378 530 502 16,540 2,596 387 2,018 1,388 11,695 178,504 Nov.19 9,252 163,286 15,253 2,168 486 502 19,029 3,489 281 1,907 2,123 15,485 233,261

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1361

Principal resource and liability items of member banks^ in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, "~0—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.]

Philadel- Cleve- Rich- At- St. San Boston. Chicago. Fran- Total. phia. land. mond. lanta. Louis. cisco.

Total United States securities owned: i Oct. 22 j 20,785 469,759 51,005 ! 15,409 8,155 5,345 47,384 18,453 5,384 ! 17,600 13,151 74,098 746,528 Oct. 29 15,405 460,020 49,790 ! 15,204 8,155 5,345 46,824 18,497 5,455 I 17,212 13,166 73,572 728,645 Nov. 5 16,365 457,859 48,965 i 15,187 8,155 5,319 45,442 18,378 5,577 17,165 13,630 75,204 727,246 Nov. 12 15,579 455,474 48,925 i 15,168 8,144 5,314 46,693 18,082 5,221 17,145 13,259 74,825 723,829 Nov. 19 18,641 493,175 52,744 15,953 8,100 5,314 50,297 19,118 5,285 ; 16,997 14,014 80,010 779,648 Loans secured by Gov- ernment war obliga- tions, including re- discounts with Fed- eral Reserve Bank: Oct. 22 39,471 422,995 67,367 18,911 7,796 905 59,426 19,231 9,679 11,971 2,825 16,415 682,992 Oct. 29 38,694 410,604 73,325 18,806 7,739 6,876 63,208 19,390 9,927 12,149 2,724 15,880 679,322 Nov. 5 39,096 411,201 72,396 18,971 8,351 6,560 60,614 18,958 10,343 12,628 2,972 14,979 677,069 Nov. 12 38,484 411,494 72,557 19,470 7,665 6,502 63,110 19,017 10,074 12,447 2,247 15,036 678,103 Nov. 19 38,506 394, 723 70,893 19,100 7,805 6,449 65,076 19,459 9,976 12,532 2,615 15,300 662,434 Loans secured by stocks and bonds other than United States securities: Oct. 22 146,233 1,162,316 194,789 112,386 15,439 6,452 337,961 88,371 16,277 33,750 12,605 69,104 2,195,683 Oct. 29 149,680 1,206,383 193,048 112,345 15,324 6,422 335,184 88,113 16,264 33,643 12,597 68,957 2,237,960 Nov. 5 150,525 1,147,200 192,877 113,748 14,788 6,607 335,479 88,271 16,473 33,360 11,946 68,192 2,179,466 Nov. 12 149,463 1,111,751 191,780 115,984 15,444 7,129 332,762 87,635 17,126 31,994 9,729 69,337 2,140,134 Nov. 19 152,044 1,091,195 194, 808 116,392 15,383 7,327 340,590 87,681 17,013 33,410 9,644 68,755 2,134,242 All other loans and in- vestments, including rediscounts with Fed- eral Reserve Bank: Oct. 22 593,690 3,682,640 519,830 308,241 82,086 74,532 272,416 46,560 ;183,248 69,266 490,360 7,498,821 Oct. 29 591^01""' ""6" 3,603,496 517,240 309,146 78,589 74,380 1,063,643 270,461 47,370 185,238 68,812 481,873 7,391,264 Nov. 5 591,049 3,595,185 520,088 311,180 77,303 73,662 1,061, 798 272,773 45,155 185,092 67, 551 479,626 7,380,462 Nov. 12 580,161 3,596,333 518,244 311,245 76,700 72,563 1,051,243 265,528 .45,875 1187,559 69,776 481,381 7,355,608 Nov. 19 585,456 3,563,401 513,594 309,466 74,329 70 424 1,041,162 262,304 45,338 1180,341 68,032 489,475 7,303,322 Total loans and invest- ments, including re- discounts with Fed- eral Reserve Bank: Oct. 22 800,179 5,737,710 832,991 454,947 13,476 93,234 1,520,723 398,471 177,900 1246,569 97,847 549,977 1,124,024 Oct. 29 794,795 ", 680,503 833,403 455,501 09,807 93,023 1,508,859 396,461 179,016 248,242 97,299 540,282 1,037,191 Nov. 5 797,035 i,611,445 834,326 459,086 08,597 92,148 1,503,333 398,380 177,548 248,245 96,099 338,001 0,964,243 Nov. 12 783,687 5,575,052 831,506 461,8P7 07,953 91,508 1,493,808 390,262 178,296 249,145 95,011 340,579 0,898,674 Nov. 19 794,647 \ 542,494 832,039 460,911 05,617 89,514 1,497,125 177,612 243,280 94,305 653,540 10,879,646 Reserve balances with Federal Reserve Bank: Oct. 22 66,600 567,804 63,582 29,856 5,980 5,210 134,785 28,817 7,670 16,078 6,969 41,250 974,601 Oct. 29 66,772 603,782 59,251 31,166 6,118 6,529 135,153 27,768 7,775 13,084 6,637 39,037 1,003,072 Nov. 5 65,260 579,841 62,559 29,440 5,248 5,242 134,780 28,075 7,824 14,803 6,938 38,621 978,631 Nov. 12 64,124 612,731 65,711 29,110 4,946 5,545 131,562 29,593 10,452 16,255 5,463 39,263 1,014,755 Nov. 19 63;918 589,453 64,283 26,257 5,583 5,095 131,392 29,987 9,052 17,398 6,321 39,021 987,760 Cash in vault: Oct. 22 16,207 106,200 14,212 9,604 1,671 2,538 38,818 5,076 3,201 4,009 2,336 10,792 214,664 Oct. 29 14,985 102,819 14,552 9,696 1,703 2,208 37,647 5,057 3,186 4,184 1,976 10,603 208,616 Nov. 5 15,353 110,342 14,841 9,406 1,879 2,323 43,179 5,166 2,997 4,381 2,029 10,671 222,567 Nov. 12 14,833 110,811 15,980 9,486 2,042 2,277 39,750 4,930 3,176 3,922 2,110 10,505 219,822 Nov. 19 15,128 110,443 15,861 9,324 1,573 2,223 38,590 4,828 2,817 3,910 2,014 10,483 217,194 Net demand deposits on which reserve is computed: Oct. 22 647,151 4,513,490 610,289 235,347 54,343 40,169 948,855 210,397 82,222 135,977 65,883 318,813 7,862,936 Oct. 29 639,395 4,506,067 596,568 239,475 55,681 39,454 942,140 207,945 84,679 134,257 63,687 313,959 7,823,307 Nov. 5 629,245 4,436,063 600,315 241,203 55,064 39,296 937,514 209,690 83,081 135,083 61,960 311,785 7,740,299 Nov. 12 628,548 4,427,331 608,005 240,977 53,054 40,648 942,034 207,156 85,518 143,779 63,443 312,943 7,753,436 Nov. 19 612,409 4,392,760 599,649 233,322 54,309 38,452 932,126 212,505 81,447 138,935 62,890 311,949 7,670,753 Time deposits: Oct. 22 60,266 335,907 29,180 183,243 21,702 21,244 292,807 76,642 26,020 10,696 5,461 239,538 1,302,706 Oct. 29 61,406 318,231 28,609 183,863 21,714 21,222 291,110 76,934 25,961 11,250 5,890 239,724 1,285,914 Nov. 5 61,195 317,616 29,204 184,106 22,529 21,370 293,468 77,423 26,324 11,193 6,291 239,979 1,290,698 Nov. 12 51,276 314,550 28,893 185,365 22,536 21,616 294,757 77,536 26,444 11,282 6,347 240,375 1,280,977 Nov.19 57,681 312,137 28,751 186,147 22,512 21,681 297,165 77,750 26,390 11,329 6,373 240,032 1,287,948 Government deposits: Oct. 22 8,036 70,293 15,140 1,921 449 164 6,538 2,909 245 2,560 1,228 6,835 116,318 Oct.29 4,964 28,560 10,052 787 332 42 4,202 1,583 68 1,485 822 4,099 56,996 Nov.5 2,791 16,059 5,645 444 182 24 2,383 891 38 834 461 2,306 32,058 Nov. 12 1,389 8,022 2,814 2,296 105 j 12 1,172 446 19 418 349 1,151 18,193 Nov.19 10,696 72,744 10,591 6,271 315 73 10,682 5,585 1,238 1,623 1,510 10,687 132,015 Bills payable with Fed- eral Reserve Bank: Secured by United States war obli- gations— Oct.22 21,299 321,429 39,261 5,138 1,280 25,266 12,428 527 11,718 4,203 17,696 461,075 Oct. 29 20,031 316,266 39,638 4,126 1,130 24,236 12,911 568 12,016 4,578 15,238 451,568 Nov.5 22,057 314,797 41,573 630 3,292 1,250 23,686 12,833 550 11,720 5,461 16,747 454,596 Nov. 12 23,072 278,594 39,424 1,542 6,950 1,250 23,713 13,438 748 9,587 4,354 15,545 418,217 Nov.19 22,614 275,092 43,485 2,430 6,697 1,250 25,340 13,495 9,456 3,471 13,199 416,867

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1362 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, 1920—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. [In thousands of dollars.]

New Philadel- Cleve- Rich- At- St. Minne- Kansas San Boston. York. phia. land. mond. lanta. Chicago. Louis. apolis. City. Dallas. Fran- Total. cisco.

Bills payable with Fed- eral Reserve Bank- Continued. All other— Oct 22 800 800 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Bills rediscounted with Federal Reserve Bank: Secured by Unite 1 States war obli- gations— Oct. 22 11,822 136,984 34,176 2,229 1,912 9,412 4,562 1,377 4,227 518 3,017 210,236 Oct. 29 12,514 135,476 35,461 2,597 2,093 8,967 4,506 1,694 4,540 529 3,173 211,550 Nov.5 14,677 136,786 36,778 2,450 1,797 7,526 3,821 1,756 4,977 338 2,718 213,624 Nov. 12 15,824 136,506 37,076 2,646 1,680 6,854 3,788 1,697 4,702 313 2,690 213,776 Nov. 19 15,661 128,782 36,640 2,457 1,555 8,932 4,409 1,700 4,604 219 2,638 207,597 All other— Oct. 22 45,585 397,690 25,940 32,132 11,871 14,635 197,571 60,925 49,901 38,042 10,203 35,313 919,808 Oct. 29 51,922 429,865 33,777 29,752 11,757 15,396 191,100 60,031 47,988 39,135 10,016 ?5,952 956,691 Nov. 5 56,225 438,884 31,896 28,356 11,175 14,498 196,333 62,210 47,807 40,4fl 10,112 40,552 978,509 Nov. 12 58,886 466,514 33,020 30,522 8,945 14,061 178,322 49,363 50,111 35,612 10,020 37,547" 972,923 Nov. 19 67,856 402,225 30,332 27,243 6,610 12,556 171,994 46,570 49,897 35,682 9,314 37,896 898,175

3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES. [In thousands of dollars.]

New Cleve- Rich- Atlanta Chicago St. Louis Kansas San Fran- York land mond 4 Citv Dallas 3 district. district.& districts district .8 cisco, Total. districts districts district. district .* district .9

Number of reporting banks: Oct.22.... 11 40 18 23 12 18 29 13 44 208 Oct.29 11 40 18 23 12 18 29 13 44 208 Nov.5 11 40 18 23 12 18 29 13 44 208 Nov. 12 11 40 18 23 12 18 29 13 44 208 Nov. 19 11 40 18 23 12 18 29 13 44 208 United States bonds to secure circula- tion: 1,599 25,209 5,608 6,980 1,905 5,280 5,398 7,108 13,185 72,272 Oct.22.... 1,599 25,209 5,608 7,030 1,905 5,280 5,398 7,108 13,185 72,322 Oct.29.... 1,599 25,237 5,608 7,030 1,905 5,280 5,398 7,108 13,185 72,350 Nov.5 1,599 25,237 5,608 7,030 1,905 5,280 5,398 7,108 13,185 72,350 Nov.12 1,599 25,249 5,608 7,030 1,905 5,280 5,398 7,108 13,185 72,362 Nov. 19 Other United States bonds, including Liberty bonds: Oct.22 10,557 43,024 9,054 22,136 18,189 7,418 9,098 7,253 21,773 148,502 Oct.29 10,939 41,950 9,054 22,158 17,925 7.628 9,113 7,232 23,195 149,194 Nov.5 10,898 41,730 9,038 22,344 17,914 1,682 9,010 7,233 21,916 147,765 Nov.12 11,279 41,590 9,081 22,318 17,857 7,737 8,953 7,233 21,843 147,891 Nov .19 11,456 42,485 9,210 22,352 19,311 7,760 8,946 7,237 22,176 150,933 United States Victory notes: Oct.22.... 2,031 13,440 2,704 2,635 19,103 2,041 1,121 1,196 7,644 51,915 Oct.29.... • 2,118 13,630 2,686 2,621 18,609 2,047 1,137 1,194 7,814 51,856 Nov. 5 2,138 13,753 2,680 2,597 18,610 2,071 1,191 1,194 8,081 52,315 Nov. 12. 2,144 13,670 2,687 2,657 18,608 2,077 1,202 1,194 8,234 52,473 Nov.19.. 2,265 13,836 2,680 2,592 18;608 2; 091 1,100 1,193 8 320 52,685 United States certificates of indebted- ; ness: Oct.22.... 8,064 10,266 1,021 5,929 26,159 1,047 2,766 1,885 8,998 66,135 Oct.29.... 7,939 9,420 916 5,832 24,831 974 2,794 1,885 9,195 63,786 Nov.5 7,877 8,669 906 5,753 22,292 834 2,794 2,000 8.954 60,079 Nov.12.. 7,859 7,826 750 5,694 21,769 1,338 2,807 2,000 8,785 58,828 Nov. 19.. 9,405 10,937 1,098 5,922 24,819 1,030 3,352 2,058 9,279 67,900 Total United States securities owned: Oct.22.... 22,251 91,639 18,387 37,680 65,356 15,786 18,383 17,442 51,600 338,824 Oct.29.... 22,595 90,209 18,264 37,641 63,270 15,929 18,442 17,419 53,389 337,158 Nov. 5 22,512 89,389 18,232 37,724 60,721 15,867 18,363 17,535 52,136 332,509 Nov. 12. 22,881 88,323 18,126 37,699 60,139 16,432 18,360 17,535 52,047 331,542 Nov.19 24,725 92,507 18,596 37,896 64,643 16,161 18,796 1 ,596 52,960 343,880 Loans secured by Government war obli- gations, including rediscounts with Federal Reserve Bank: Oct.22.... 11,314 40,608 8,886 19,267 14,725 11,169 11,242 3,019 17,242 137,472 Oct. 29 11,114 39,989 9,108 18,901 16,020 11,386 11,011 2,921 17,184 137,634 Nov. 5 10,928 39,404 8,933 18,900 15,618 11,346 11,326 2,559 16,978 135,992 Nov.12 10,809 38,706 8,871 19,039 15,698 11,471 11,383 2,395 16,401 134,773 Nov.19 10,778 38,702 8,605 18,468 15,335 11,960 11,920 2,795 17,169 135,732

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis DECEMBER, 1920. FEDERAL RESERVE BULLETIN. 1363

Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Oct. 22 to Nov. 19, 1920—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars.]

New Cleve- Rich- Atlanta Chicago St. Louis Kansas Dallas San Fran- York land mond 6 City cisco, Total. districts district .2 district.s district.* district.5 district. district.? district.* districts

Loans secured by stocks and bonds other than United States securities: Oct. 22.... 53,672 154,858 31,840 39,762 59,294 47,277 28,515 14,717 68,202 498,137 Oct.29.... 55,541 153,736 31,821 38,894 58,446 36,423 29,223 15,963 69,596 489,643 Nov.5 54,973 157,931 31,984 38,624 58,091 36,479 29,083 15,716 70,959 493,840 Nov. 12 56,087 151,992 31,876 38,529 57,687 35,716 28,924 15,825 70,382 488,018 Nov. 19.. 56,225 152,767 32,372 39,987 57,311 36,683 30,741 15,775 71,636 493,497 All other loans and investments, includ- ing rediscounts with Federal Reserve Bank: Oct. 22.... 193,951 497,292 121,676 263,508 350,852 120,287 202,779 85,354 470,436 2,306,135 Oct.29 191,552 497,445 120,680 283,871 353,120 120,608 204,913 83,223 475,036 2,310,448 Nov. 5 193,956 501,529 118,996 262,166 350,559 120,245 204,420 82,679 470,229 2,304,779 Nov. 12 193,465 489,983 119,414 260,881 351,294 118,266 202,755 81,016 473,752 2,290,826 Nov. 19. 192,355 489,881 117,414 255,372 340,059 117,423 199,097 78,785 471,925 2,262,311 Total loans and investments, including rediscounts with Federal Reserve Bank: Oct. 22.... 281,188 784,697 180,789 360,217 490,227 194,519 260,919 120,532 607,480 3,280,568 Oct.29.... 280,802 781,379 179,873 359,307 490,856 184,346 263,589 119,526 615,205 3,274,883 Nov.5 282,369 788,253 178,145 357,414 484,989 183,937 263,222 118,489 610,302 3,267,120 Nov. 12. 283,242 769,004 178,287 356,148 484,818 182,885 261,422 116,771 612,582 3,245,159 Nov. 19 284,083 773,857 176,987 351,723 477,348 182,227 260, 554 114,951 613,690 3,235,420 Reserve balances with Federal Reserve Bank: Oct.22.... 16,432 56,109 12,819 16,621 25,356 8,534 17,735 8,406 41,182 203,194 Oct. 29 16,224 55,461 13,837 19,233 27,030 8,576 17,420 8,348 40,738 206,867 Nov.5 13,858 58,316 12,214 17,160 26,086 9,347 17,175 8,089 41,251 203,496 Nov. 12. 15,807 54,291 11,105 18,005 25,909 9,619 17,736 7,581 40,261 200,314 Nov.19.. 15,304 57,398 12,461 16,801 25,323 9,274 18,651 8,140 39,757 203,109 Cash in vault: Oct. 22.... 3,353 16,266 6,212 7,414 12,388 4,072 6,378 3,645 14,667 74,395 Oct. 29.... 3,063 15,688 5,864 8,258 11,462 3,882 6,589 3,298 13,939 72,043 Nov.5 4,020 17,866 6,190 7,617 13,146 3,906 6,366 3,338 13,877 76,326 Nov. 12 3,604 15,989 6,315 7,452 12,519 4,145 6,573 4,176 15,163 75,936 Nov. 19 3,534 17,578 6,250 7,329 12,015 3,762 6,342 3,307 14,444 74,561 Net demand deposits on which reserve is computed: Oct. 22 168,578 540,187 111,807 159,146 198,371 79,121 146,539 66,366 297,374 1,767,489 Oct. 29 165,637 533,418 112,613 157,237 196,227 79,253 146,479 67,329 297,946 1,756,139 Nov.5 169,017 539,931 110,790 157,104 187,524 79,762 147,650 65,405 298,237 1,755,420 Nov. 12 166,229 525,822 109,195 159,409 191,498 83,073 149,731 65,767 314,278 1,765,002 Nov. 19 163,555 530,010 108,905 158,935 190,156 81,007 152,175 66,977 301,090 1,752,810 Time deposits: Oct. 22 ! 67,510 117,928 19,210 88,009 225,335 42,608 58,713 22,844 266,261 908,418 Oct. 29 j 68,589 118,319 19,229 87,920 224,652 42,745 58,939 22,934 266,309 909,636 Nov.5 68,570 118,624 19,013 87,817 225,081 43,336 60,733 23,175 267,483 913, 832 Nov. 12 69,771 119,000 19,006 89,181 223,808 42,480 60,869 23,323 269,151 916,589 Nov. 19 69,752 119,301 18,884 89,983 222,104 40,803 61,156 23,397 268,089 913,469 Government deposits: | Oct. 22 | 2,684 13,182 1,250 1,081 4,465 747 522 441 370 24,742 Oct. 29 ! 1,899 9,337 710 823 2,925 462 464 374 59 17,053 Nov.5 ! 1,066 5,047 527 568 1,644 248 261 209 50 9,620 Nov. 12 533 5,664 310 313 822 125 131 107 29 8,034 Nov. 19 ! 1,985 16,384 1,709 938 6,400 915 509 67 338 29,245 Bills payable with Federal Reserve I Bank: | Secured by United States war obli- i gations— Oct. 22 16,955 11,311 7,270 24,903 35,593 8,827 7,452 6,855 12,194 131,360 Oct. 29 15,675 15,189 7,027 26,398 35,067 8,525 8,368 7,915 13,002 137,166 Nov. 5 17,091 24,155 6,886 26,238 33,858 8,952 8,463 8,115 13,118 146,876 Nov. 12 17,851 22,643 8,118 23,452 33,149 8,785 9,260 7,630 9,683 140,571 Nov. 19 19,188 14,527 7,286 25,859 35,315 8,857 5,238 5,760 7,699 129,729 All other— Oct. 22 756 495 85 1,336 Oct. 29 721 265 85 1,071 Nov.5 918 325 270 1,513 Nov. 12 325 320 1,452 Nov. 19 25 185 878 Bills rediscounted with Federal Reserve Bank: Secured by United States war obli- gations— Oct. 22 2,596 6,599 2,648 7,384 4,159 4,302 1,909 926 1,548 32,071 Oct. 29 2,072 7,085 2,791 7,132 4,551 4,255 1,882 817 1,567 32,152 Nov.5 1,872 5,092 2,515 7,455 4,627 4,148 2,082 633 1,523 29,947 Nov. 12 1,887 5,292 2,315 7,119 4,659 4,194 2,116 512 1,501 29,595 Nov. 19 1,817 5,255 1,960 7,287 4,263 4,478 1,962 574 1,689 29,285 All other— Oct. 22 10,742 4,749 15,405 50,386 14,145 23,350 28,785 9,619 30,085 187,266 Oct. 29 14,348 4,899 14,379 49,501 13,837 23,004 26,953 9,188 30,787 186,896 Nov.5 11,046 5,947 14,983 48,647 21,734 22,080 26,893 8,573 30,015 189,918 Nov. 12 14,713 3,545 15,746 45,218 20,114 20,775 25,155 7,460 28,880 181,606 Nov.19 15,575 4,171 14,105 46,372 13,596 20,306 23,570 6646,6488 29', 169 173,512

1 Buffalo. 6 Louisville, Memphis, and Little Rock. 2 Cincinnati and Pittsburgh. i Omaha, Denver, and Oklahoma City. 3 Baltimore. s El Paso and Houston. 4 New Orleans, Jacksonville, Nashville, and Birmingham. 9 Spokane, Portland, Seattle, Salt Lake City, and Los Angeles. * Detroit.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis IMPORTS AND EXPORTS OF GOLD AND SILVER. 00 Gold imports into and exports from the United States, distributed by countries.

Imports. Exports.

During 10 During 11 During During 10 From Jan. From Jan. During 10 During 11 During During 10 From Jan. From Jan. days end- days end- month of days end- 1 to Nov. 1 to Nov. days end- days end- month of days end- 1 to Nov. 1 to Nov. ing Oct. ing Oct. October, ing Nov. ing Oct. ing Oct. October, ing Nov. 10, 1919. 20, 1920. 31, 1920. 1920. 10, 1920. 10, 1930. 10, 1919. 20, 1920. 31, 1920. 1920. 10, 1920. 10, 1920.

Belgium.. $13 834 $13,834 $1,900 $352,864 $422,242 $31,900 Denmark 257 257 199,551 2,002,666 France 2,781,071 $299,329 3,080,400 2,490,710 22,158,754 4,016,019 Germany 6,515 6,515 6,515 $10,000 Greece 128,700 95,000 Iceland 912 Italy 40,107 241,263 277,514 N et h erlands 1.158 1,163,121 15,000 Norway 3,324 Portugal 25,364 Russia in Europe 24,489 1 268 631 Spain 62,821 62,821 42,585 238,322 28,070,000 Sweden 354 944 354,944 358 627 714 610 661 Switzerland 4,937 2,604 67,570 United Kingdom: England 26,663,950 42,309,743 108,326,617* 13,079,548 •218,382,243 3,552,896 13,235 2,082,824 Scotland 45 Total EuroDp 29,820,571 42,671,893 111,871,035 15,973,370 244,687,088 4,070,138 268,014 36,564,154 British Honduras 20 10,000 Canada 471 243 667,261 1,155,097 344,864 33,378,901 33,834,920 $m,499 $171,167 $595,785 $128,587 5,015,216 4,616,223 % Costa Rica 7 784 49,505 35,907 575,024 611 479 Gnatftmala. 14,872 8,267 to Honduras 12,295 1,255 44,395 229,497 258,255 19,000 21,300 d Nicaragua 22 534 46,121 122,565 1,345 1,080,335 1,208,178 16,500 Panama 53 440 194,668 306,258 17,870 498,312 3,401 390,000 Salvador '271 271 151,902 1,057,938 681,594 20,000 3,098,020 Mexico 118 023 361,929 178,162 4,153,275 3,983,132 263,050 77,250 617,249 157,331 17,705,798 7,756,592 Newfoundland 221 147,507 221 221 61 Cuba 328 328 15,090 5,085 25,000 75,000 500,000 British West Indies 26,293 48,793 34,438 260,347 18,838 7,940 Virgin Islands of United Statps 15,070 525 10,000 Dominican Republic 4,680 120 4,800 4,800 5,000 5,000 44,000 10,000 Dutch West Indifis 130,367 51,906 182,273 25,495 539,649 5,200 Haiti 10 10 23 • Total North America 847,479 1,123,918 2,276,445 789,983 41,808,304 40,618,935 394,549 278,417 1,293,034 285,918 23,314,014 15,926,575 Argentina 44,578 1,707,682 102,158 89,995,000 32,960,000 Bolivia 496 496 7,374 1,069 2,500,000 Brazil 8,221 8,221 10,959 43,765 26,200 280,000 425,000 Chile 4 502 5,750 16,022 1,940 380,664 218,060 400,000 100,000 Colombia 326 824 1,207,770 1,724,416 777,026 6,545,251 552,024 700,000 4,953,620 Ecuador 32,929 523,893 379,911 50,000 30,000 236,000 British Guiana . . U,304 11,985 23,672 146,177 120,554 5,005 Dutch Guiana 15,454 23,399 20,144 6,300 19,795 Peru .... 262,726 60,050 325,164 14,324 1,043,309 709,531 3,653,376 2,893,369 Uruguay 12,850,000 7,405,000 Venezuela 45,767 74,870 122,160 8,557 494,832 258,711 184,000 11,232,220 Total South America 651 filQ 1,356,661 2,241,393 896,510 10,916,346 2,388,362 50,000 30,000 108,304,676 62,494,009

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis China 1,260 3,000,000 3,000,000 28,286,750 32.656.908 Chosen (Korea-) - • - - ijil' British India 8,630 8,630 6,512.371 27,630.133 Straits Settlements 6,683,454 1,194,667 Dutch East Indies 176 573 176,573 2,849,567 3,416,333 12,065,105 6,521,000 French East Indies 2 290 000 Hongkong 30,191,910 10,000,000 259,510 133,300 510,360 208.850 29,243,862 31,573,046 Japan 9,829,210 6,600,005 21,069,215 11,512 851 SO 293 OQ1 73,578,715 Russia in Asia 1 23,000 Total Asia 176,573 176,573 33,042,737 13,418,047 13,097,350 6,733,305 24,588,205 11,721.701 165,374,633 173,177,469 Australia 486,650 486,650 i New Zealand 82,971 123,868 63,348 1,734,227 683,123 ; •; Philippine Islands 56,834 15,853 72,687 45,786 818,685 489,173 102,500 British East Africa . . . ; 240 British South Africa 423 423 8 150 British West Africa 39,446 Portuguese Africa 280,358 499,324 Total, all countries 31,636,047 45,168,325 116,762,001 18,256,070 1333,774,818 62,175,252 13,491,899 7,011,722 25,931,239 12,037.619 2 297,300,783 288,264,947 Excess imports or exports 18,144,148 38,156,603 90,830,762 6,218,451 36,474,035 | i 226,089,695 I Excess of gold imports over exports since Aug. 1, 1914, $816,229,000. Excess of gold exports over imports since June• 10 , 19191 , $284,790,000. 1 Includes: Ore and base bullion, $15,023,000; United States Mint or Assay Office bars,$3,846,000; other bullion, refined, $247,062,000; United States coin, $16,210,000: foreign coin, $51,628,000. 2 Includes: Domestic exports—Ore and base bullion, $11,000; United States Mint or Assay Office bars, $34,979,000; other bullion, refined, $1,063,000; coin, $200,179.000. Foreign exports—Bullion, refined, $498,000; coin, $571,000j

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Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Silver imports into and exports from the United States, distributed by countries. CO

Imports. Exports.

During 10 During 11 During During 10 From Jan. From Jan. During 10 During 11 During During 10 From Jan. From Jan. days end- days end- month of days end- 1 to Nov. 1 to Nov. days end- days end- month of days end- 1 to Nov. 1 to Nov. ing Oct. ing Oct. October, ing Nov. 10, 1920. 10, 1919. ing Oct. ing Oct. October, ing Nov. 10, 1920. 10, 1919. 20, 1920. 31, 1920. 1920. 10, 1920. 20, 1920. 31, 1920. 1920. 10, 1920.

Belgium.. $24,267 $24,267 $32,428 $1,797 Denmark $599,857 Finland 17,438 France 2 010 2,760 $3,503 112,153 17,176 $32,920 6,588,197 Greece $42,240 42,240 42,240 Italy 24,026 Netherlands ,54,861 1,092,497 Norway 14,453 1,219,430 Portugal 7,978 1,950 Spain 1,834 1,834 69,682 228 Sweden. 31,395 54,960 111, 430 Switzerland 172,203 United Kingdom—England 1,979 11,088 14,164 1,725 816,950 37,824 $146,605 $81,190 $227, 795 $2,500 4,821,678 15,324,282 Total Europe 28,256 55,162 85,265 5,228 1,206,166 56,797 146,605 81,190 227,795 2,500 4,909,55S 25,127,512 British Honduras.. 5,730 5,730 69,097 255,637 Canada 44,348 58,709 147, 753 39,941 3,355,418 6,230,640 46,474 52,787 145,649 51,639 6,508,950 4,415,618 >1 Costa Rica 535 3,882 2,014 62,802 153,672 ir •Guatemala 24,534 8 j j 4,500 5,400 'Honduras 235,167 11 532, die 2,280,610 2,575,241 5 391,510 177,550 ft 'Nicaragua 18,137 56 36,419 25 632,590 742,4S0 3,000 Panama 1 576 3,902 6,938 148,199 89,273 542,000 249,250 •Salvador 30 782 30,782 9,900 3, 725, 765 355,757 1,500 Mexico 812^ 815 667,542 2,622,626 808,037 48,225,248 52,854,154 90,120 72,723 181,112 26,050 3,047, 074 1,195,253 "Newfoundland . 11 British West Indies 7,017 6,225 741 8,535 9,276 27.356 I 10,328 Cuba 5 123 5,123 71,638 59.374 3,000 1,250,904 ! 161 Virgin Islands of United States 1,105 25,000 ! Dominican Republic 120,800 4, 500 50,000 54,500 316 000 ! 150,000 ^Dutch West Indies 200 30 230 2,097 300 IFrench West Indies...... 20 Haiti 77 77 77 j 9,000 i Total North America . 1,148,623 732,155 3,388,540 866,855 58, 725,912 63,323,877 j 141,835 184,045 | 390,537 80,694 12,125,294 6,205,060 Argentina 7,429 35,492 61,446 585 585 12, 723 2,230 Bolivia 216,218 25,000 251,298 13,000 i 1 2fiO. 812 108,487 Brazil 940 940 388 1,621 2 155 2,333 852 Chile 3,829 357,301 528,672 4 322 3 139 526 1, 571,180 j •Colombia 35,177 13,859 49,399 626 1 ;fiQ4J2fi3 196 170 2,000 Ecuador 2 941 8,090 65,753 13, 670 1 British Guiana 42 121 j 2,493 Dutch Guiana 6,390 265 , 1,402 5,063 Peru 100,000 395,330 516, 752 542, 852 10,846,052 7,600,266 Venezuela... 41 85 185 598 10,000 50,000 Total South America 358,165 792,471 1,355,236 568,617 16,050,136 9,554,358 585 585 26,458 62,638 China . . 1 5,343 | 1,295,317 > 1 271 399 283,627 2,824,081 59,241,013 39,351,245 Chosen (Korea) 1 3 328 British India I 223,211 109,180,718 Dutch East Indies j 81,553 81,553 2,408,890 1,543,116 i French East Indies 1 4,058.373 Hongkong I 1,650 113,284 206,253 431,469 164,740 20,610,359 6 369,880 Japan j 1,191,500 638,234 1,829, 734 416,005 3,848,251 3,946,453

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Russia in Asia... 970 52,759 Turkey in Asia... 38,511 Total Asia. 81,553 81,553 5,343 3,744,368 1,546,444 | 2,576,183 1,128,114 5,085,284 580,745 87,982,177 158,901,055 New Zealand... 50 50 228 11,992 586 Philippine Islands... 1,151 255 1,406 519 17,777 10,505 British South Africa. 6,097 76,822 British West A frica.. 4,400 4,400 11,880 Portuguese Africa 93,321 52,252 Total, all countries... 1,617,798 1,580,043 4,912,050 1,446,790 | 179,855,769 74,621,611 I 2,869,023 1,393,934 5,708,601 663,939 2 105,055,367 190,296,265 Excess imports or exports. 186,109 782,851 1,251,225 796,551 25,199,598 115,674,624

Excess ol silver exports over imports since Aug. l, iyi4, $45i,o/i,uuu. 1 Includes: Ore and base bullion, $63,040,000; United States Mint or Assay Office bars, $3,000; other bullion, refined, $7,031,000; United States coin, $1,831,000: foreign com, $7,951,000. 2 Includes: Domestic exports—ere and base bullion, $16,000; United States Mint or Assay Office bars, $4,348,000; other bullion, refined, $60,073,000; coin, $14,537,000. Foreign ex:ports—orj e and base bullion, $1,000; bullion,refined, $21,756,000; coin, $4,324,000.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1368 FEDERAL RESERVE BULLETIN. DECEMBER, 1920.

General stock of money in the United States, money held by the Treasury and the Federal Reserve System, and all other money in the United States, Nov. 1, 1920.

Amount per Held in the Held by or for Held outside capita outside United States Federal Reserve United States United States General stock. Treasury as Banks and Treasury and Treasury and assets of the 1 agents. Federal Reserve Federal Re- Government. System. serve System.

Gold coin (including bullion in Treasury) $2,739,043,566 $435,891,220 j 2 $1,324,328,816 $421,819,032 Gold certificates ! 325,600,190 231,404,308 Standard silver dollars \ 269,857,494 '"i3," 636," 962* »26,646,010 89,721,794 Silver certificates 77,837,252 60,384,609 Subsidiary silver 1 1 264,697,830 3,141,698 261,556,132 Treasury notes of 1890 j 1,627,867 United States notes | 346,681,016 8,181,712 i * 60,763,726 277,735,578 Federal Reserve notes ! 3,663,517,685 23,750,109 292,952,755 3,346,814,821 Federal Reserve Bank notes ! 238,601,900 3,680,824 ! 23,661,882 211,259,194 National-bank notes ! 732,549,629 15,323,030 2,203,015 715,023,584 Total: Nov. 1,1920.. 8,254,949,120 503,605,555 ! 2,133, 993,646 5,617, 349,919 $52.26 Oct. 1,1920. 8,136, 332,855 472,464,953 \ 2,110, 500,713 5,553, 367,189 51.70 Sept. 1,1920. 7,997, 080,820 485,884,277 I 2,031, 514,938 5,479,681,605 51.06 Aug. 1,1920. 7,927, 844,377 483,824,265 | 2,059, 010,192 5,385, 009,920 50.22 July 1,1920. 7,887, 181,586 485,057,472 | 2,021. 271,614 5,380, 852,500 50.19 Jan. ,1920.. 7,961, 320,139 604,888,833 ! 2,044; 422,303 5,312 009,003 49.81 July ,1919.. 7,588. 473,771 578,848,043 I 2,167. 280,313 4,842! 345,415 45.00 Jan. ,1919.. 7,780; 793,606 454,948,160 j 2,220', 705,767 5,105! 139,679 47.83 July ,1918.. 6,742, 225,784 356,124,750 j 2,018! 381,825 4,367 739,209 i 41.31 Jan. ,1918.. 6,256; 198,271 277,043,358 1,723!,570,291 4,255 584,622 i 40.53 July 1,1917. 5,480! 009,884 253,671,614 j 1,2801,880,71! 4 3,945 457,556 i 37.88

1 Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the redemption of outstanding gold and silver certificates and Treasury notes of 1890. 2 Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Reserve notes, and of gold held with foreign agencies but inclusive of balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. 3 Includes subsidiary silver. < Includes Treasury notes of 1890.

FEDERAL RESERVE BANK DISCOUNT RATES.

Rates on paper discounted for member banks approved by the Federal Reserve Board up to Dec. 1, 1920.

Paper maturing within 90 days. Bankers' Agricultural Secured by- acceptances and live-stock Federal Reserve Bank. maturing paper maturing Trade Commercial within after 90 days, Treasury Liberty bonds acceptances. paper n. e. s. 3 months. but within 6 certificates of and Victory months. indebtedness. notes.

Boston 51 7 New York.... 7 Philadelphia.. ? 6 Cleveland 6 51 Richmond 6 6 Atlanta 6 7 Chicago 6 7 St. Louis 6 Minneapolis.. Kansas City.. Dallas San Francisco

1 Discount rate corresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia, Atlanta, Kansas City, and Dallas, and 54 per cent in the case of Cleveland, Richmond, Chicago, and San Francisco. 2 5J per cent on paper secured by §\ per cent certificates and 5 per cent on paper secured by 4J and 5 per cent certificates. NOTE.—Rates shown for St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of a basic line fixed for each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line arj e subject to a £ per cent progressive increase for each 25 per cent by which the amount of accommodation extended exceeds the basic line.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis INDEX TO VOLUME 6.

Page. Acts: Abstract business of a national bank under section Amending Clayton Antitrust Act 813 11-k 385 Amending Federal Reserve Act— Acceptances: ' Sec. 14—Progressive discount rates 448, 498 Acceptance liabilities of member banks 158, 686 Sec. 25a—Corporations engaging in foreign Agencies of national banks for purpose of ac- banking (Edge Act) 56 cepting drafts 835 Making gold certificates legal tender 60 Automobile paper 65 Mississippi law authorizing State banks to ac- Banks granted authority to accept up to 100 per cept drafts and bills of exchange 701 cent of capital and surplus 60,159, 382, 492, 608 Mississippi law relating to par collections 387 697, 833, 945,1063,1175,1300 Texas banking laws authorizing trust com- Bankers', definition of 1180 panies to acept drafts or bills of exchange 950 Collection of 699 Administrator, executor, etc. (See Fiduciary Conference of bankers with Board relative to powers.) acceptance credits ^ 559 Advertising: Cotton factor, paper 162 Right of national bank having trust powers to Dollar exchange drafts 835 use the words "trust company" as part of Documentary drafts, bankers' acceptances se- corporate title 497 cured by 610 State bank member that it is under Govern- Domicile bills 386 ment supervision 65 Draft drawn on foreign buyer 610 Advisory Council, Federal: Draft drawn by an American manufacturer for Conferences with Board. 224, 556, 579,1019,1123,1263 financing purchase of goods from a foreign To discuss credit situation 556, 579 seller 162 Recommendations on interest and discount Draft drawn by a cotton factor 162 rates 224 Draft drawn for purpose of furnishing dollar Report to Board relative to credit control.. 581,583 exchange 835 Agencies of national banks for purpose of accepting Draft, renewal of 66, 277 drafts 835 Draft secured by warehouse receipt covering Agencies, foreign branch. (See Foreign branches.) automobiles and automobile tires 65 Agricultural implement industry, terms of sale in.. 1149 European banks, 1913, 1918, and 1919 374 Agricultural paper: Foreign buyer, draft drawn on 610 Definition of 1180,1301 Foreign seller, draft drawn by an American Held by Federal Reserve banks each month.. 93,193, manufacturer for financing purchase of goods 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 from 162 Regulations of Board on discount of 1180 Growth in acceptance market 559, 666 Amendment to section 8 of Clayton Act 813 Held by Federal Reserve banks each month... 93, Amendments to Federal Reserve Act: 193, 307, 416, 532, 642, 741, 873, 985,1102,1233,1349 Section 14—Graduated discount rates 448,498 Mississippi law authorizing State banks to ac- Section 25a—Corporations engaging in foreign cept drafts and bills of exchange 701 banking (Edge Act) 56 Amendments to State banking laws. (See State Purchased by Federal Reserve banks- banking laws.) Distributed by maturities— American Bankers' Association: Three months ending December, 1919. 191 Address of Secretary of Treasury before 1123,1125 Three months ending March, 1920. ... 530 Ileport of committee of, on McFajdden gold bill. 1147 Three months ending June, 1920 870 American Foreign Banking Corporation, New York Three months ending September, 1920. 1231 City, foreign branches of 272, 607, 944,1298 Distributed by rates of discount— American investments abroad 687,777 Three months ending Nov. 30, 1919... 92 Anglo-French loan 1129 Three months ending Feb. 29, 1920... 414 Annual report of Board, extract from, relative to Three months ending May 31, 1920. . . 742 credit control 223, 239 Three months ending Aug. 31, 1920... 1104 Argentina: Each month 91, 93,191, Banking and financial conditions in 592 193, 306, 413, 415, 530, 532, 641, 642, 740, 741, Credit to allies 596 870, 873, 984, 985, 1101, 1102, 1231, 1233, 1349 Deposits, capital, etc., of principal banks in, Regulations of Board regarding 1181,1182 1914-1919 599, 600 Renewal acceptances 65, 66, 276, 277 Exchange rates on foreign countries, 1914-1920. 598 Shipping documents, acceptances against. .. 66,1301 Gold reserves 1297 Texas law authorizing trust companies to accept Monetary system 593 drafts and bills of exchange 950 Public debt 596 Trade acceptance as actual security 1065 Resources and liabilities of Banco de la Nacion. 597 Accommodations granted by city banks to corre- Asia Banking Corporation, New York City, foreign spondents, methods followed 584 branches of 272,607,944,1298 1369

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Page. Banking laws, amendments to—Continued. Page. Assets and liabilities. (See Condition statements.) Texas law authorizing trust companies to accept Australia: drafts and bills of exchange 950 Wholesale prices in, index of 511, 621, Belgium: 711,849, 961,1079,1208,1323 Budget 1322 Note-issue department of Commonwealth Gold reserves of Bank of Belgium 144 Bank 1321 Bills discounted and bought. (See Discount and Austro-Hungarian Bank, gold reserves 144,1297 open-market operations.) Automobiles and automobile tires: Bills of exchange: Acceptance of drafts secured by warehouse Practice of handling in foreign countries 269 receipts covering 65 Regulations of Board on discount and pur- Terms of sale in the industry 258-261 chase of 1179,1181,1182 Balance of trade. (See Imports and exports.) Blankets, woolen, terms of sale in the industry 470 Bank notes. (See Federal Reserve bank notes; Bonds: National bank notes.) Foreign, prices of 450 Bank of Belgium, gold reserves 144,1297 liberty, prices of 446, 555 Bank of Denmark, gold reserves 1297 Purchases by Treasury suspended 445 Bank of England: Bonuses to soldiers 340 Condition statements 334, 893 Books in Federal Reserve Board library 701, 834, 946 Discount rates 446,1070,1199,1312 Books, terms of sale in the industry 1037 Gold reserves 144,1297 Boots and shoes, terms of sale in the industry 930 Note circulation 485, 842, 954,1069,1199,1312 Boyden, R. W., remarks by, before Brussels inter- Reserves, circulation, and security holdings, national financial conference 1292 December, 1917-March, 1920 485 Boundaries of sixth and eighth Federal Reserve Bank of France: districts, changes in 59 Condition statements 334, 893,1073,1203,1315 Branches, foreign, of American banks 63,159, 272, 382, Deposits, note circulation, and reserves 218, 492,606, 944,1174,1299 1073,1203,1315 As of February 18, 1920 272 Gold reserves 144,1297 As of May 18, 1920 606 Report of, for year 1919 372 As of August 18, 1920 944 Reserves, circulation, and security holdings, As of November 18, 1920 *. 1298 December, 1917-March, 1920 485 Branches of Federal Reserve banks: Bank of Japan: Directors, election of 61,159 Gold reserves 145,1297 Los Angeles branch, opening of 60 Note circulation 1077 Oklahoma City branch- Bank of Java, gold reserves 145,1297 Authorized 62 Bank of the Netherlands: Directors chosen 159, 782 Condition statements 336, 894 Opening of 782 Gold reserves 145,1297 Brazil: Bank of Norway: Assets and liabilities of banks in 821-824 Condition statements 45 Economic and financial conditions in 813 Gold reserves 145,1297 Exchange rates at Rio de Janeiro, 1914-1919... 819 Bank of Roiimania, gold reserves 144,1297 Foreign trade 815 Bank of Spain: Monetary system 814 Condition statements 335, 895 Note circulation 815 Gold reserves 145,1297 Public debt 819 Bank of Sweden: Brick industry, terms of sale in 938 Condition statements 45 Brussels international financial conference 1129, Gold reserves 145,1297 1277-1293 Bank of Switzerland, gold reserves 145,1297 Boyden, R. W., remarks of 1292 Bank premises, cost of 135, 830 Cassel, Gustav, report of ,. 1277 Bank transactions—debits to individual account: Delacroix, M., memorandum of 1281 January, 1919-May, 1920 603 Pigou, A. C, memorandum of 1282 November, 1918-March, 1920 483 Report of conference 1288 1919-1920 1259 Resolutions adopted 1283 Weekly 84,185, Builders' supplies, terms of sale in the industry 939 297,407, 524, 635, 733, 863, 978,1095,1225,1342 Building activity, reports on, by Federal Reserve Bankers' acceptances. (See Acceptances.) agents 682 Banking and financial conditions: Building materials, notes for, eligibility for redis- Discussion of 10,120, 222, 347, 454, count 699 565, 671, 781, 910,1018,1133,1259,1262 Building operations, loans for 927 Index of, January, 1918-March, 1920 479 Business conditions: Review, year 1920 662-670, 723-733,1253-1261 Indexes of 474 Banking laws, amendments to: In the several districts .... 13,122, 225, 349, 456, 567, Section 8, Clayton Act 813 673,783,912,1020,1135.1264 Section 14, Federal Reserve Act—-progressive Review, year 1920 1254-1260 discount rates 448, 498 Business failures. (See Commercial failures.) Section 25a, Federal Reserve Act—Edge Act.. 56 Call loan rates: Making gold certificates legal tender 60 In New York market, October, 1918-August, Mississippi law authorizing State banks to ac- 1920 942 cept drafts and bills of exchange 701 Memorandum of Federal Reserve agent of New Mississippi law relating to par collections 387 York on 369

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Call loan rates—Continued. page. Page, Reply of Board to Senate resolution relative Chemical industry, terms of sale in 1157 to 345,368 Chile: Call report, Comptroller of the Currency 442 Condition of banks in 1055-1061 Canada: Economic and financial conditions in 1052-1061 Gold reserves 1297 Exchange rates on foreign countries 1055 Wholesale prices in, index of... 32,167, 282, 392, 510, Exports 1054 621, 712, 849, 962,1079,1209,1323 Public debt 1056 Canals at Sault Ste. Marie, commerce of.. 83,184, 733, 985, Trade with foreign countries 1044 1094,1224,1339 China industry, terms of sale in ]031 Cancellation of orders, reports on, by Federal Re- Circulation, currency: serve agents 679 Abroad, discussion of 6, 667, 902, 909, 928 Capital: Bank of England 485. 842, 954,1069,1199,1312 European banks, 1913, 1918, and 1919 374 Bank of France 485,1203,1315 Federal Reserve banks—• Bank of Japan 1077 Increase or decrease in, regulations of Board Banks in allied, central, and neutral countries, regarding .--•--.-. 1187 1914-1920 488 (See also Resources and liabilities.) Brazil 815 National banks, increase or decrease in 62, Chile 1052 160, 274, 383, 492, 609, 697, 833, 946,1064,1175,1300 Federal Reserve notes— State banks admitted to membership 62,159, July, 1919-June, 1920 146 273,383,492, 607, 697, 833, 945,1063,1174,1299 Weekly 100, 200, 317, (See also Condition statements.) 425, 540, 649, 751, 880, 993,1111,1240,1356 Carpets, wool, terms of sale in the industry 471 German Reichsbank 486, 847,1317 Case, Justice, opinion by, on exercise of trust powers League of Nations on 898, 901, 909 by national banks located in Connecticut 610 Per capita in the United States— Cassel, Gustav, remarks by, before Brussels inter- By months 109, 210, 327, national financial conference 1277 435, 551, 659, 762. 890,1004.1121,1250,1368 Cement industry, terms of sale in 938 July, 1919-June. 1920 730 Certificate of deposit: Reform In India....' 253,1298 Form of 495 Reserves against Federal Reserve note circula- Time, subject to rules and regulations of savings tion 146 department 1065 Resolution of Senate regarding 558, 582 Certificates of indebtedness: Clayton Antitrust Act: Allotments of Treasury loan and tax certificates, Amendment to section 8 813 July, 1919-June, 1920 729 As applied to private bankers 948 Issues of 1, 339, 445. 553, 661, 769, 897,11*23,1253 Regulations of Board under 1193 Maturities 99,199, 316, 424, 540, Clearing and collection: 649, 751, 879, 992,1110,1239,1355 Collection of bill of lading draft received from Chapman, W. T., resignation as secretary of Federal nonmember bank for account of member Reserve Board 1134 bank 948 Charges, collection. (See Clearing and collection.) Collection of check drawn on a member bank Charters issued to national banks 62,160, 274, 383, forwarded by another member bank with 492, 609, 697, 833, 946,1064,1175,1300 instructions to remit to a Federal Reserve Charts: Bank 494 Cash reserves and excess reserves of Federal Re- Collection of maturing items for the account of serve banks during 1919 147 another Federal Reserve Bank 276 Debits to individual account, January, 1919- Collection of notes and acceptances 699 May, 1920. . 605 Exchange charges on member bank's own Deposit liabilities of national banks 727 acceptance 162 Deposits, notes, and reserves of Federal Reserve Governor of Board to Member of Congress re- banks 725 garding 489 Discount and interest rates in New York Growth of the system 310, 724,1016 market, October, 1918-August, 1920 942 Interdistrict time schedule 746, 987 Earning assets of Federal Reserve banks 725 Map showing States on par list 94, Exchange rates— 194, 308, 419, 535, 644 Denmark 41 Mississippi law relating to par collections 387 New York, on allied, neutral, and silver Number of banks on par list— standard countries 51, 52,1159,1161 By months 94,194, 308, 418, 534, 643, Sweden 41 745, 874, 986,1105,1234,1350 Growth of "clearing and collection system 312 July, 1919-June, 1920 724 Interreserve bank discounting 1042 Operations of system— Investments of national banks, 1914-1920 727 By months 94,194, 308, 418, 534, 642. Money in the United States, stock of 827 744, 874, 986,1105,1234,1350 Par point map. 94,194, 308,419, 535, 644 1917-1920 310,1016 Reserves, circulation, etc., of principal central 1919-1920 724 banks in Europe 487 Opinions of courts in Atlanta par clearance Wholesale prices in the United States 964,1082, case 496,1303 1212,1326 Regulations of Board regarding 483 Check clearing and collection. (See Clearing and Clearing-house bank debits: collection.) November, 1918-March, 1920 483

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Clearing-house bank debits—Continued. Pase- Page. January, 1919-May, 1920 603 Copper industry, terms of sale in 149 1919-20 1259 Corset industry, terms of sale in - 811 Weekly 84,185, 297, Cost of living: 407, 524, 635, 733, 863, 978,1095,1225,1342 In England 845, 957,1072,1203,1313 Clearing-house representatives, conference of, to Supreme council of peace conference on. ... 363, 451 discuss interest rates 3,157 (See also Prices.) Coal: Cotton fabrics, finished, production and ship- Production in England 617, 709, 844,1071 ments 1028,1146,1275 Production in France 619, Cotton factor, draft drawn by, eligibility for accept- 710, 846, 907, 959,1074,1205 ance \ 162,1176 Production in Germany 907,1207 Cotton manufactures industry, terms of sale in 464 Strike in England 1198,1311 Cotton, stocks of \ 76,177, 290, 400, Shortage, reports on, by Federal Reserve 480,518, 627, 717, 856, 970,1089,1219,1333 agents 789 Counsel of Federal Reserve Board, opinions by. Coal and coke, production and shipments 79,179, 292, (See Rulings.) 402, 480, 520, 629, 719, 858, 972,1091,1220,133Countrie5 s in which banks may accept drafts to fur- Coal and coke industry, terms of sale in 265 nish dollar exchange 1175 Coin, gold, use of in payment of Liberty bond cou- Court opinions in Atlanta par clearance case... 496,1303 pons 454 Credit control: Collateral notes held by Federal Reserve Banks Address of Secretary of Treasury before Ameri- each month 93,193,307, can Bankers Association 1125 415, 532, 641, 741, 872, 985,1102,1233,1349 Conference of Advisory Council and directors Collection conditions in Federal Reserve districts.. 922 with Board to discuss 556, 566, 579 Collection of checks. (See Clearing and collection.) Discussion of 113,116. Commercial failures: 217, 221, 448, 553, 555, 665, 774, 897,1013,1124 By months :. 63,160, 274, Export, reduction of 217 384,493, 609, 697, 833, 945,1064,1175,1300 Extract from Annual Report of Board relative During 1919 160 to 223, 239 Commodity paper, irrigation company paper as 949 Loans for building operations 927 Comptroller of the Currency: Loans for speculative purposes 342, 446, Call report 442 554,665,774, 897,1012 Ruling by, re agencies of national banks for Recommendations of Federal advisory council purpose of accepting drafts 835 on 556 Condition statements: Resolution of Senate, reply of Board 558, 582 Banco de la Nacion, Argentina 597 Statement of Board re credit for crop moving.. 1124 Bank of England 334, 893 Credits to foreign countries: Bank of France 334, 893,1073,1203,1315 Discussion of 7, 214, 343, 562, 901 Bank of the Netherlands 336, 894 Herbert Hoover on 114,140 Bank of Norway 45 Letter of Secretary of Treasury to Chamber of Bank of Spain 335, 895 Commerce of LTnited States regarding 137 Bank of Sweden 45 Crop forecasts 606, 696, 832, 943,1062,1175 Brazilian banks 821-824 Crop moving, credit for 1012; 1016 Chilean banks, 1914-1919 1057-1061 Statement of Board regarding 1124 Cuban banks 1166-1168 Cuba: English commercial banks, 1914-1919 1044 Condition of banks in 1166-1168 Federal Reserve Banks 95,195, 313, Economic and financial conditions in 1162-1168 420, 536, 645, 747, 875, 988,1106,1235,1351 Imports and exports 1164 French commercial banks, 1913-1919 1047,1314 Monetary system 1164 German commercial banks, 1913-1919 1049 Moratorium decree 1165 German Reichsbank 335, 601, 894 Public debt 1165 Member banks— Sugar production and exports 1163 Abstract of 329, 438, 764,1005 Cunliffe committee, final report of 141 June, 1919-May, 1920 728 Currency: Weekly 102, 203, 319, Circulation— 427, 543, 651, 753, 882, 995,1112,1241,1357 Abroad, discussion of 6, 657, 902, 909, 928 National Bank of Copenhagen 46 Bank of England.... 485, 842, 954,1069,1199,1312 National banks, abstract of 442 Bank of France 485,1203,1315 Conferences: Bank of Japan 1077 Bankers with Board relative to acceptance Banks in allied, central, and neutral coun- credits 559 tries, 1914-1920 488 Clearing-house representatives with Board to Brazil 815 discuss interest rates 3157 Chile 1052 Directors of Federal Reserve Banks with Board Federal Reserve notes— to discuss credit situation 556* 566, 579 July, 1919-June, 1920 146 Federal Advisory Council 224, Weekly 100, 200, 317, 556,566,579,1019,1123,1263 425, 540, 649, 751, 880, 993,1111,1240,1356 Federal Reserve Agents '. 1123,1263 German Reichsbank 486, 847,1317 Governors of Federal Reserve Banks 455,1123 League of Nations on 898, 901,909 Connecticut, exercise of trust powers by national Per capita in the United States— banks located in 610 By months 109, 210, 327, Construction work, notes for, eligibility for redis- 435,551, 659, 762, 890,1004,1121,1250,1368 count 699 July, 1919-June, 1920 730

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Currency—Continued. Pa&e- Directors of Federal Reserve Branch Banks—Con. page. Circulation—Continued. Election of, for year 1920—Continued. Reform in India 253,1298 New Orleans 61 Reserves against Federal Reserve note Oklahoma City 159, 782 circulation 140 Omaha 61 Resolution of Senate regarding 558, 582 Pittsburgh 61 Receips and shipments, July, 1919-May, 1920. 731 Portland 61 Stock of, in the United States— Salt Lake City 61 By months 109, 210, 327, Seattle 61 435,551,659, 762, 890,1004,1121,1250,1368 Spokane 61 1917-1920 824-827 Procter, W. C, resignation of, as director of July, 1919-June, 1920 730 Cincinnati branch 10 Debits to individual account: Discount and open-market operations of Federal November, 1918-March, 1920 483 Reserve Banks: January, 1919-May, 1920 603 Acceptances held each month.. 93,193, 307, 416, 532, 1919-1920 1259 642,741, 873, 985,1102, 1233, 1348 Weekly 84,185, 297, Acceptances purchased— 407, 524, 635, 733, 863, 978,1095,1225,1342 Distributed by maturities— Decisions. (See Opinions ) Three months ending December, 1919 191 Definitions: Three months ending March, 1920 530 Agricultural paper 1180 Three months ending June, 1920 870 Demand deposits 1182 Three months ending September, 1920. 1231 Promissory notes 1180 Distributed by rates of discount— Readily marketable securities under Regula- Three months ending Nov. 30, 1919... 92 tion F. .? 385 Three months ending Feb. 29, 1920... 414 Time deposits and savings accounts 1182 Three months ending May 31, 1920... 742 Warrants 1183 Three months ending Aug. 31. 1920... 1104 Delacroix, M., memorandum of, presented at Brus- Each month 91, 93,191,193, 306, 413, 415, sels international financial conference 1281 530, 532, 641, 642, 740, 741, 870, 873, Denmark: 984, 985,1101,1102,1231,1233,1349 Foreign exchange rates in Copenhagen 41, 44 Agricultural and live-stock paper held each Gold policy and foreign commerce of 35 month 93,193, National Bank of Copenhagen, condition state- 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 ment 46 Bills discounted— Trade balance, 1912-1917 39 Distributed by maturities— Deposit certificate: Three months ending December, 1919. 191 Form of 495 Three months ending March, 1920 530 Time, definition of 1183 Three months ending June, 1920 870 Time, subject to rules and regulations of savings Three months ending September, 1920. 1231 department 1065 Distributed by rates of discount— sits: Three months ending Nov. 30, 1919... 91 Demand and time, definition of 1182 Three months ending Feb. 29, 1920... 413 European banks, 1913, 1918, 1919 374 Three months ending May 31, 1920... 742 Federal Reserve Banks— Three months ending Aug. 31, 1920... 1103 July, 1919-June, 1920 724 Each month 90,1912 (See also Condition statements.) 306, 412, 530, 641, 740, 870, 984,1101,1231,1348 Great Britain, France, and Italy 218 Bills held eadh month 93,193, Member banks, 1914-1920 726-728 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 Savings accounts, definition of 1183 Charts showing interreserve bank discounting. 1042 Directors of Federal Reserve Banks: Collateral notes held each month 93,193 Conference with Board to discuss credit situa- 307, 415, 532, 641, 741, 872, 985,1102,1233,1349 tion 556, 566, 579 Dollar exchange bills purchased each month. 91,191, Election of, for year 1920 60 306, 413, 530, 641, 740: 870, 984,1101,1231,1349 Thompson, W. B., resignation as director of Earning assets held— New York bank 10 Each month 90,190, Voting for, by member banks 1178 305, 412, 529, 640, 739, 869, 983,1100,1230,1348 Directors of Federal Reserve Branch Banks: July, 1919-June, 1920 723, 725 Election of, for year 1920—• Earnings from each class of earning assets, Baltimore 61 monthly 90,190, 305, 412, Birmingham 61 529, 640, 740, 869, 983,1101,1230,1348 Buffalo 61 Number of member banks accommodated each Cincinnati 61 month 89,189, 304, Denver 61 411, 528, 639, 738, 868, 982,1099,1229,1346 Detroit 61 Rates of earnings from investments— El Paso 61 By months 90,190, 305, Houston 61 412, 529, 640, 740, 869, 983,1101,1230,1348 Jacksonville 61 June, 1919-May, 1920 732 Little Rock 61 Rediscounting during crop-moving period 1017 Los Angeles 60, 61 Rediscounts and sales of paper between Federal Louisville 61 Reserve Banks— Memphis 61 October-December, 1919 192 Nashville 61 January-March, 1920 $31

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Discount and open-market operations of Federal page. Edge Act: Page. Reserve Banks—Continued. First Federal Banking Corporation organized Rediscounts and sales of paper between Federal under 449 Reserve Banks—Continued. Foreign trade under 5 April-June, 1920 871 Investments abroad under 1168-1173 July-September, 1920 1232 Regulations of Board under 379,1190 First 7 months of 1920 1014 Text of 56 1919-20 730,1041 Election of directors. (See Directors.) Total investment operations 89,189, 305, Electrical goods industry, terms of sale in 262 412, 529, 640, 739, 869, 983,1100,1230,1347 Emerson, R. G., appointed assistant to governor of War paper discounted 90,191, 306, Board 1134 412, 530, 641, 665, 741, 870, 984,1101,1231,1348Employees, Federal Reserve Banks: War paper held each month 93,193, 307, Questionnaire on salaries of 54 415, 532, 641, 741, 872, 985,1102,1233,1349 Method of adjusting salaries 1293 Discount policy of Federal Reserve Banks: Employment conditions, reports on, by Federal Extract from Annual Report of Board regard- Reserve agents 791 ing 223, 239 Engines and boilers, terms of sale in the industry.. 156 Reply of Board to Senate resolution relative England: to 558, 582 Bank of England—• Discount rates: Condition statements 334, 8<)o Advance in 2,118, 447, 557 Discount rates 446,1070,1199,1312 Bank of England 446,1070,1199,1312 Gold reserves 144,1207 Conference of clearing-house representatives Note circulation 485, 842, 954,1069,1199,1312 with Board to discuss 3,157 Reserves, circulation, and security hold- Discussion of 2,117, 223, 345, 447, 557, 777 ings, December, 1917-March, 1920 485 Graduated, amendment to sec. 14 of Federal Capital, deposits, and acceptances of leading Reserve Act relating to 498 banks, 1913, 1918, and 1919 375 In effect, monthly 110, 211, 328,436, Coal production 617, 709, 844,1071 551, 659, 762, 890,1004,1121,1250,1368 Coal strike 1198,1311 In New York market— Condition of principal commercial banks in, January, 1918-March, 1920 479 1914-1919 1044 October, 1918-August, 1920 ... 941 Cost of living index 845, 957,1072,1203,1313 Preferential, on member bank notes, ruling Foreign exchange rates 843, 957,1070,1201 on 162,163 Government floating debt 1070,1199,1312 Prevailing in various centers 72,172,286,396, Investment trusts in 1169 514, 622, 713, 852, 967,1085,1215,1329 Pig iron and steel production 709, Progressive 448, 498, 777 844,1071,1202,1313 Recommendations of Advisory Council on 224 Price control of commodities in 244 Resolution of Federal Reserve Bank of Kansas Price situation in, address on, by Hon. R. Mc- City relative to graduated rates 449 Kenna \ 247 Reports on, by Federal Reserve districts 571 Reserves, deposits, and note circulation 218 Districts, Federal Reserve, change in boundaries Ship tonnage under construction. 844,1071,1202,1313 of sixth and eighth 59 Trade-union employment 618, Dividends of Federal Reserve Banks 135, 726, 830 709, 844, 957,1072,1203,1313 Dividends and earnings of State bank members. 660,1251 Wholesale prices in, index of 30, Dollar exchange: 166, 280, 389, 506, 617, 708, 844, 954,1069,1198,1310 Acceptance of draft drawn for furnishing...... 835 Errata: Bills purchased by Federal Reserve Banks July Bulletin 928 each month 91,191, 306, 413, August Bulletin 947 530, 641, 740, 870, 984,1101,1231,1349 Essential loans. .. 342,446, 554, 665, 774, 897, 904, 927,1012 Countries in which banks may accept drafts Evans, Judge B. D., opinion by, in Atlanta par to furnish 1175 clearance case 496 Domicile bills as acceptances 386 Exchange rates, foreign. (See Foreign exchange Drafts: rates.) Regulations of Board on discount, etc., of.. 1179,1182 Executor, administrator, etc. (See Fiduciary pow- (See also Acceptances.) ers.) Drug industry, terms of sale in 1155 Exports. (See Imports and exports.) Dry goods industry, terms of sale in 797 Failures, commercial: Earning assets of Federal Reserve Banks: By months 63, Amounts held— 160, 274, 384,493, 609, 697, 833, 945,1064,1175,1300 1920, by months 90,190, 305,412, During 1919 160 529, 640, 739, 869, 983,1100,1230,1348Farm land, loans on, regulations of Board regarding. 1185 July, 1919-June, 1920 723, 725 Federal Advisory Council: Earnings and dividends of State bank members. 660,1251 Conferences with Board. 224, 556, 579,1019,1123,1263 Earnings and expenses of Federal Reserve Banks: To discuss credit situation 556, 579 Calendar year 1919 132-136 Recommendations on interest and discount January, 1919-June, 1920 726 rates 224 Six months ending June 30, 1920. 828-831 Report to Board relative to credit control. .. 581, 583 Earnings from investments of Federal Reserve Kederal land bank notes, eligibility of, for redis- Banks, rates on, June, 1919-May, 1920 732 count 609 Eddy, W. L., appointed assistant secretary of Fed- Federal Reserve act, amendments to: eral Reserve Board 1134 Section 14—Progressive discount rates 448, 498

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Federal Reserve act, amendments to—Continued. Page. Federal Reserve Board—Continued. Page. Section 25a—Corporations engaged in foreign Reply to Senate resolution relative to interest banking (Edge Act) 56 rates on call loans 345, 368 Federal Reserve agents: Resolutions of, regarding political affiliations Gold fund transactions 300, 633, 976,1015,1341 of officers or directors of Federal Reserve Meetings of 1123,1263 Banks 10 Federal Reserve bank notes: Statement of, re credit for crop moving 1124 Circulation, July, 1919-June, 1920 724 * Strauss, Albert, retirement of, as member 348 Stock of, in the United States— Wills, D. C., appointed member of 1019 By months 109, 210, 327,435, Federal Reserve Bulletin printed in two editions.. 672 551,659, 762,890,1004,1121,1250,1368 Federal Reserve districts, changes in boundaries of 1917-1920 825 sixth and eighth 59 July, 1919-June, 1920 730 Federal Reserve notes: Federal Reserve Banks: Circulation, July, 1919-June, 1920 724 Condition statements, weekly 95,195, 313, Interdistrict movement of 202, 542, 881,1241 420,536,645,747,875,988,1106,1235, 1351 Issued and redeemed, June, 1919-May, 1920... 732 Directors of. (See Directors.) Note account of Federal Reserve agents 100, 200, Discount and open-market operations of. (See 317, 425, 540, 649, 751, 880, 993,1111,1240,1356 Discount and open-market operations.) Reserve against, 1919 146 Dividends paid— Stock of, in the United States— Calendar year 1919 135 By months 109, 210, 327, 435, 551, January-June, 1920 830 659, 762, 890,1004,1121,1250,1368 January, 1919-June, 1920 726 July, 1919-June, 1920 730 Earnings and expenses— 1917-1920 825, 826 Calendar year 1919 132-136 Fiduciary powers: January, 1919-June, 1920 726 Abstract business of a national bank under Six months ending June 30, 1920 828-831 section 11 (k) 385 Fiscal agency disbursements— Administration of trust department of a na- 1919 135 tional bank under Regulation F 699 January, 1919-June, 1920 726 Exercise of, by national banks located in Con- January-June, 1920 830 necticut 610 Franchise tax 135, 830 Exercise of, by national banks located in Wis- Norris, G. W., appointed governor of Philadel- consin 700 phia bank 348 Granted to national banks 64,161, 274, 384, 493, Political affiliations of directors or officers of... 10 608, 698, 834;946,1063,1174,1300 Profit and loss account, calendar year 1919.. 135, 830 Opinion by Judge Van Valkenburgh on right Rediscounts and sales of paper between— of national bank to use the words ''trust During three months period... 192, 531, 871,1232 company" as part of corporate title 497 1919-20 730,1041 "Readily marketable securities" under Reg- Review of operations, 1919 11 ulation F 385 Salaries of employees— Real estate loans by national banks 949 Questionnaire on 54 Regulations of Board regarding 1184 Method of adjusting 1293 Right of a national bank to do an abstract busi- Federal Reserve Board: ness 385 Chapman, W. T., resignation of, as secretary... 1134 First Federal Foreign Banking Corporation, or- Conference with bankers relative to acceptance ganization of, under Edge Act 449,1299 credits 559 First National Bank, Boston, foreign branches of. 272, 606, Conference with clearing-house representives 944,1299 to discuss interest rates 3,157 Fiscal agency disbursements of Federal Reserve Conferences with Federal Advisory Council . 224, 556, Banks: 579,1019,1123,1263 Calendar year 1919 135 Conferences with governors of Federal Reserve . January, 1919-Jime, 1920 726 Banks 455,1123 January-June, 1920 830 Eddy, W. L., appointed assistant secretary 1134 Foreign banking: Emerson, R. G., appointed assistant to governor. 1134 Act (Edge) providing for incorporation of insti- Harding, W. P. G., redesignated as governor.. 782 tutions engaging in 56 Harrison, G. L., resignation as general counsel. 782 Discussion of 218, 564 Herson, J. F., appointed chief of division of Regulations of Board governing corporations examination 1134 engaging in 379,1190 Hoxton, W. W., appointed secretary 1134 Foreign banks: Logan, W. S., appointed counsel 782 Capital and surplus, deposits, and acceptances Moehlenpah, H. A., retirement of, as member.. 911 of leading banks in Europe 374 Paddock, W. W., resignation of, as chief of Condition statements- division of examination 1134 Argentine banks 597 Platt, Edmund- Bank of England 334, 893 Appointed member 566 Bank of France 334, 893,1073,1203,1315 Designated as vice governor 782 Bank of the Netherlands 336, 894 Regulations of, series of 1920 379,1179 Bank of Norway 45 Remarks of Gov. Harding relative to credit Bank of Spain 335, 895 control 557, 579 Bank of Sweden 45 Reply to Senate resolution relative to discount Brazilian banks 821-824 policy 558,582 Chilean banks 1057-1061

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Foreign banks—Continued. Page. France—Continued. Pa8e- Condition statements—Continued. Bank of France—Continued. Cuban banks 1166-1168 Deposits, note circulation, and reserves 218, English commercial banks 1044 1073,1203,1315 French commercial banks 1047 Gold reserves, 1900-1919 144 German commercial banks 1049 Report of, for year 1919 372 German Reichsbank 335, 894 Reserves, circulation, and security hold- National Bank of Copenhagen 46 ings, 1917-1920 485,1315 Gold reserves— Budget 490,958,1072 1900-1919 144 Capital, deposits, and acceptances of leading 1910-1920 1295-1297 banks, 1913, 1918, and 1919 376 Foreign bonds, price and yield of 450 Coal in 619, 710, 846, 907, 959,1074,1205 Foreign branches of American banks 63, Condition of principal commercial banks in 159.272,382,492,606, 944,1174,1298 1913-1919 1047,1314 Asof Feb. 18, 1920... 272 Foreign exchange rates 709,1074,1204,1315 As of May 18, 1920 606 French National Bank of Foreign Commerce, As of Aug. 18, 1920 944 organization of 46 As of Nov. 18, 1920 1298 Price control of commodities in 246 Foreign countries: Public debt 958,1073,1203,1315 Loans to— Tax proposals for 1920 491 Discussion of 7,114, 214, 343, 562, 901 Wholesale prices in, index of 31, Herbert Hoover on. 114,140 166, 281, 390, 507, 619, 710, 846, 957,1072,1203,1313 Secretary of Treasury to Chamber of Com- Franchise tax, Federal Reserve Banks 135, 830 merce of United States regarding 137 French National Bank of Foreign Commerce, organi- Practice of handling bills of exchange in 269 zation of 46 Foreign exchange rates: Fruits, shipments of 77, Buenos Aires, 1914-1920 598 177, 291, 401, 519, 628, 717, 857, 971,1089,1219,1333 Chile 1055 Fur manufacturing industry, terms of sale in 807 Cunliffe Committee report on 141 Furniture industry, terms of sale in 936 Denmark, 1914-1919 14, 44 Germany: Discussion of 4,115, 216 Capital, deposits, and acceptances of leading 219,343,450,563,670,778,900,1128,1260 banks, 1913, 1918, and 1919 376 England 843, 957,1070,1201 Coal production 907,1207,1318 France 709,1074,1204,1315 Condition of principal commercial banks in Germany 1076,1319 1913-1919 1049 In New York on allied, neutral, and silver- Foreign exchange rates 1076,1319 standard countries '.. 49-52,1158-1162 Indemnity figures 563 League of Nations on 898, 901, 909 Price control of commodities 1206 Low levels for sterling 216.1260 Public debt 1076,1317 Norway, 1914-1919 43 Reichsbank— Quoted in New York— Condition statements 335, 894,1076,1317 Three months ending December, 1919. . . . Ill Gold reserves. 144,1297 Three months ending March, 1920 437 Note circulation 847,1317 Three months ending June, 1920 763 Report of, for year 1919 601 Three months ending September, 1920 1122 Reserves, circulation, and security hold- Rio de Janeiro, Brazil, 1914-1919 819 ings, 1917-1920 \ 486 Review, year 1920 670,1260 Wholesale prices in 847,1075,1206,1317 Sweden, 1914-1919 40,42 Glass industry, terms of sale in 940 Foreign loans: Glove industry, terms of sale in 812 Anglo-French loan 1129 Gold: Discussion of 7,114, 214, 343, 562, 901 Certificates legal tender, act making 60 Government and municipal loans placed in the Coin, use of, in payment of Liberty bond cou- United States 687-692 pons 454 Herbert Hoover on 114. 140 Exports, 1919 219 Secretary of Treasury to Chamber of Com- Imports and exports of 9,108,119, merce of United States regarding 137 209, 221, 325, 346, 433, 453, 549, 565, 657, 671, 760, Foreign trade: 780,888, 909,1002,1018,1119,1132,1248,1261,1364 Brazil, 1910-1919 815 Report of committee of American Bankers Chile 1054 Association on McFadden gold bill 1147 Denmark 38, 39 Reserves. (See Reserves.) Discussion of 4, Stock of, in the United States— 115, 217, 219, 451, 562, 775, 899, 908,1127,1260 By months 109, 210, French National Bank of Commerce organized 327, 435, 551, 659, 762, 890,1004,1121,1250,1368 to promote 46 1919-1920 730 Index of 694, 841, 953,1068,1197,1309 1917-1920 825, 826 Establishment of 694 Gold settlement fund transactions: Norway 37, 39 During crop-moving period 1015 Sweden 36, 39 During year 1920 300, 633, 976,1015, 1339 Under Edge Act 5 June, 1919-July, 1920 724 Form of certificate of deposit 495 Government financing: France: Bond purchases suspended 445 Bank of France— Discussion of 1,113, Condition statements.... 334,893,1073,1203,1315 213, 339, 445, 553, 661, 769, 897,1011,1123,1253

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Government financing—Continued. Page. Indexes—Continued. Page. Plan for future 113 Physical volume of trade— Government supervision, advertising by State mem- Monthly 74,174, 288, ber bank that it is under 65 398, 516, 624, 714, 853, 968,1086,1216,1330 Governors of Federal Reserve Banks: 1913-1920 480 Conferences with Board 455,1123 Retail trade 53, 238, Norris, G. W., appointed at Philadelphia, vice 377, 503, 614, 706, 839, 951,1066,1195,1307 E. P. Passmore, resigned 348 Establishment of 53 Governor of Federal Reserve Board: Wholesale prices— Harding, W. P. G., redesignated 782 Abroad 26,164, 279, On bonuses to soldiers 340 388, 506, 616, 708, 842, 954,1069,1198,1310 On credit control 116, 557, 579 In the United States 30, On discount rates 117, 582 68, 165, 168, 280, 282, 393, 499, 511, 611, On loans for essential industry 904, 927 616, 702, 712, 836, 850, 962,1081,1210,1325 Remarks before conference of Advisory Council Description of international price index.. 26, 499 and directors relative to control of credit.. 557, 579 India: Reply to Senate resolution relative to dis- Currency reform in 253,1298 count policy 582 Rupee reserves 1297 Grain and flour, receipts and shipments 75,175, 289, Wholesale prices in 963,1079,1209,1324 399, 480, 517, 626, 716, 855, 969,1088,1218,1332 Industrial loans, foreign, placed in the United Great Britain. (See England.) States. 691 Harding, W. P. G., redesignated as governor of Interdistrict time schedule 746, 987 Federal Reserve Board 782 Interest rates: Hardware industry, terms of sale in 150 Call loans- Harrison, G. L., resignation of, as counsel to Fed- Memorandum of Federal Reserve agent of eral Reserve So2,Td. _...... ^ ...... 782 New York on 369 Hats, men's and women's, tcn^s of sale in the in- Reply of Board to Senate resolution re- d y . garding 345, 368 Herson, J. F., appointed chief of division of ex- Conference °f clearing-house representatives amination 1134 ^ith Boam to discuss 3,157 Hides and skins, raw stocks of. 80, 180, 2^4, 404, 522, 631, In New York— 721, 860, 973,1092,1*222,1337 January, 1918-Ivfarch ,1920 _- 479 Hoover, Herbert, on loans to foreign countries... 114,140 October, 1918-August, 1920..., 941 Hosiery industry, terms of sale in 472 Prevailing I£ various centers 72,172, 286, Houston, David F., appointed Secretary of the & 396, 5i4, 522, 713, 852, 967,1085,1215,1359 Treasury 121 Recommendations of Advisory Council on 224 Hoxton, W. W., appointed secretary of the Federal Reports on, by Federal Reserve agents. ^ 571 Reserve Board ". 1134 International Banking Corporation, New York Imports and exports: City, foreign branches oi 273, 492, 607, 944,1298 Actual and adjusted values of 1257 Internation financial conference at Brussels 1129, Brazil, 1910-1919 815 1277-1293 Chilean 1054 Boyden, R. W., remarks of 1292 Cuban 1164 Cassel, Gustav, report of 1277 Denmark 39 Delacroix, M., memorandum of 1281 England 618, 709, 843, 956,1071,1200,1313 Pigou, A. C, memorandum of 1282 France 508, 620, 710, 847, 959,1075,1205,1317 Report of conference 1288 Gold 9,108,119, 209, 221, 325, 346, 433, 453, Resolutions adopted 1283 549, 565, 657, 671, 760, 780, 888, 909,Interreserve bank discounting, charts showing. .1041-1044 1002, 1018, 1119, 1132, 1248, 1261, 136Investmen4 t securities, depression in 223 Italy 508 Investment trusts as a channel for investment Meat products exports 75, 175, 289, abroad - 1168-1173 399, 517, 626, 715, 854, 969, 1087, 1217, 1331 Merchandise, 1913-1920 482 Investments, American, abroad 687, 777 Japan 509, 849, 961 Iron and steel, production of 80,181, 294, 403, Norway 39 481, 521, 630, 720, 860, 973,1092,1222,1336 Pig tin imports 80,181, 294, Iron and steel industry, terms of sale in 148 404, 522, 631, 720, 860, 973,1092,1222,1336 Irrigation company paper as commodity paper.... 949 Silver 9,108,120, 209, 221, 326, 346, 434, 454, Italy: 550, 565, 658, 671, 761, 780, 889, 909, Budget 489,957,1320 1003,1018,1120,1132,1249,1262,1364 Gold reserves '...... 1297 Sweden 39 Reserves, bank deposits, and note circulation.. 218 United Kingdom, France, and Italy 218 Price control of commodities in 246 Income and excess-profits taxes 341,1253 Public debt 489 Indexes: * Tax law in effect Jan. 1, 1920 489 Banking and financial conditions, January, Wholesale prices in 31,166, 281, 1918-March, 1920 479 391, 508, 620, 711, 848, 959,1080,1210,1320 Jamaica, law regulating foreign banking in 1039 Business conditions, description of 474 Japan: Foreign trade 694, 841, 953,1068,1197,1309 Bank of Japan— Establishment of 694 Gold reserves 145,1297 Imports and exports of merchandise, 1913-1920 482 Note circulatian.. ,,,,.„,., 1077

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Japan—Continued. Page. Import tariff 1319 Loans, investments, and deposit liabilities of mem- Wholesale prices in, index of 509, ber banks, 1914-1920 726 848,960,1076,1207,1319 Locomotives and cars, output of 82,183, 296, Jewelry industry, terms of sale in 1032 405, 523, 632, 722, 862, 974,1093,1223,1338 Joint stock land bank, notes of, eligibility for Logan, W. S., appointed general counsel of Federal rediscount 609 Reserve Board 782 Knit goods, production of 925,1027,1145,1275 Los Angeles branch bank, opening of 60 Laces and embroideries, terms of sale in the industry. 473 Lumber, receipts and shipments 79,179, 292, 402, Law department. (See Rulings.) 480, 520, 629, 718, 858, 972,1090,1220,1364 Laws, banking: Lumber industry, terms of sale in 933 Act making gold certificates legal tender 60 McFadden gold bill, report of committee of Ameri- Amendment to Clayton Act 813 can Bankers Association on 1147 Amendments to Federal Reserve Act— McKenna, Hon. R., address of, on price situation in Section 14—Progressive discount rates.. 448,498 England 247 Section 25a—Corporations engaging in Machine tool industry, terms of sale in 155 foreign banking (Edge Act) 56 Machinery manufacturing industry, terms of sale in. 156 Authorizing establishment of French National Maps. (See Charts.) Bank of Foreign Commerce 48 Maturities: India currency law ,253,1298 Acceptances purchased— Mississippi law authorizing State banks to Each month 91,191, 306, accept drafts or bills of exchange 701 413, 530, 641, 740, 870, 984,1101,1231,1349 Mississippi law relating to par collections 387 Three months ending December, 1919 191 Regulating foreign banking in Jamaica 1039 Three months ending March, 1920 530 Tax legislation in Spain 692 Three months ending June, 1920 870 Texas banking laws authorizing trust com- Three months ending September, 1920... 1231 panies to accept drafts or bills of exchange.. 950 Three months ending Nov. 30, 1919 92 Lead industry, terms of sale in 149 Tnree months ending Feb. 29, 1920 114 League of Nations: I Three months ending May 31, 1020 742 On currency situation and foreign eXGnanpp 858, Three months ending Aug. 31, 1920 1104 "901, 909 Bills discounted by Federal Reserve Banks- Brussels international conference 1129,1277-1293 Each month 90, 99,191, 199, Boyden, R. Vv., remarks of 3 222 306, 316, 412, 424, 530, 540, 641, 649, 740, 751, C&ssel, Gustav, report of 1277 870, 879, 984, 992,1101,1110,1230,1239,1348 Delacroix, M., memorandwui. of 1281 Three months ending Nov. 30, 1919 91 Pigou, A. C.a memorandum of 1282 Three months ending Feb. 29, 1920 413 Report -zi conference 1288 Three months ending May 31, 1920 742 Resolutions adopted 1283 Three months ending Aug. 31, 1920 1103 Leather manufactures, terms of sale in the industry 932 Three months ending December, 1919 191 Liberty bond coupons, gold coin in payment for 454 Three months ending March, 1920 530 Liberty bonds: Three months ending June, 1920 870 Prices of 446, 555 Three months ending September, 1920 1231 Purchases by Treasury suspended 445 Certificates of indebtedness 99, Limitations on rediscounts for a State member 199, 424, 540, 649? 751, 879, 992,1110,1239,1355 bank , 495 Meat products, exports of 75,175, Live stock, receipts and shipments of.. 74,174,288,398, 289, 399, 517, 626, 715, 854, 969,1087,1217,1331 480, 516, 625,714,853, 968,1086,1216,1330 Medicines, terms of sale in the industry 1155 Live stock paper held by Federal reserve banks, Member banks: each month 93,19 , 307, Classification of loans and discounts of State 415, 532, 641, 741, 872, 985,1102,1233,1349 bank members 333, 444, 766,1007 Loans: Condition reports—• By member banks to other banks and trust Abstract of 329, 438, 764,1005 companies as of Nov. 17, 1919 552 June, 1919-May, 1920 728 Call loan rates, reply of Board to Senate resolu- Weekly 102,203, tion relative to 345, 368 319,427,543,651, 753, 882, 995,1112,1241,1341 Essential, governor of Board to a lumber com- Earnings and dividends of State bank mem- pany regarding 927 bers 660,1251 For speculative purposes 342, Loans by, to other banks and trust companies 446, 554, 665, 774, 897,1012 as of Nov. 17, 1919 552 Foreign, placed in the United States 687-692 Loans, investments, and deposit liabilities of, In aid of exports, suspension of, by War 1914-1920 726-728 Finance Corporation 562 Number accommodated through discount oper- Methods followed by city banks in granting ations each month 89,189, accommodation to correspondents 584 304,411, 528, 639, 738, 868, 982,1099,1229,1346 Movement of, in Federal Reserve districts 920 Number in each district, by months 89,189, Real estate-^- 304,411, 528, 639, 738, 868, 982,1099,1229,1346 By national banks exercising trust powers 949 Resources and liabilities, June, 1919-June, Regulations of Board regarding 1185 1920 729 To foreign countries— State banks admitted to system, by months.. 62,159, Discussion of 7,114,140,214, 343, 562, 901 273,383,492, 607, 697, 833, 945,1063,1174,1299 Secretary of Treasury to Chamber of Men's clothing industry, terms of sale in 803 Commerce of United States regarding... 137 Men's furnishings, terms of sale in the industry 810 Statement of Herbert Hoover regarding, 1X4,140 Men's hats, terms of sale in the industry ,,. T T 809

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Page. Page. Mercantile Bank of the Americas, New York, foreign Notes of Federal land bank, eligibility of, for re- branches of 63,159, 272, 382, 607, 944,1298 discount 609 As of Feb. 18, 1920 272 Notes, drafts, and bills of exchange, regulations of As of May 18, 1920 607 Board on discount, etc., of 1179,1181,1182 Asof Aug. 18, 1920 944 Notes, promissory, definition of 1180 As of Nov. 18, 1920 1298 Office appliances, terms of sale in the industry 1038 Merchandise, imports and exports, 1913-March, Oil refineries, output of 79,180, 293, 403, 1920 482 480, 521, 630, 720, 859, 973,1091,1221,1336 Methods followed by city banks in granting accom- Oklahoma City branch bank: . modation to correspondents 584 Authorized 62 Millinery, terms of sale in the industry 808 Directors chosen 159, 782 Mississippi law authorizing State banks to accept Opening of 782 drafts or bills of exchange 701 Opinions by courts in Atlanta par clearance case. 496,1303 Mississippi law relating to par collections 387 Opinion by Judge Van Valkenburgh on right of Moehlenpah, H. A., retirement of, as member of national bank having trust powers to use the Federal Reserve Board 911 words "trust company" as part of corporate title. 497 Money: Opinion by Justice Case on right of national banks Per capita circulation— in Connecticut to exercise trust powers 610 By months 109, 210, 327, 435, Opinion by supreme court of Wisconsin relative to 551, 659, 762, 890,1004,1121,1250,1368 exercise of trust powers by national banks located July, 1919-June, 1920 730 in that State 700 Receipts and shipments, July, 1919-May, 1920. 731 Opinions of counsel of Federal Reserve Board. Stock of, in the United States— (See Rulings.) By months 109, 210, 327, 435 Optical goods, terms of sale in the industry 1034 551, 659, 762, 890,1004,1121,1250,1368 Paddock, W. W., resignation of, as chief of division f 1917-1920 824-827 of examination 1134 July, 1919-June, 1920 - 730 Paint industry, terms of sale in 940 Municipal loans, foreign, placed in the United Paper industry, terms of sale in 1035 States 689 Par collection of checks. (See Clearing and collec- Music and musical instruments, terms of sale in the tion.) industry 1034 Park-Union Foreign Banking Corporation, New National bank notes: York City, foreign branches of 273, 607, 944,1299 Stock of, in the United States— Passmore, E. P., resignation of, as governor of By months 109, 210, 327, 435, 551, Federal reserve bank of Philadelphia. 348 659, 762, 890,1004,1121,1250,1368 Peace Conference, statement of supreme council July, 1919-June, 1920 730 of, on economic conditions 363, 451 1917-1920 - - 825 Per capita circulation in the United States: National banks: By months 109, 210, 327, 435, 551, Abstract business under sec. Ilk 385 659, 762, 890,1004,1121,1250,1368 Acceptance liabilities of 158, 686 July, 1919-June, 1920 730 Administration of trust department under Reg- Petroleum, production of... 79,180, 293, 403, 480, 521, 630, ulation F 699 719, 859, 972,1091,1221,1335 Agencies of, for accepting drafts 835 Petroleum industry, terms of sale in 267 Capital of, increase and decrease in. ... 62,160, 274, Pig iron and steel production in England 709, 383, 492,' 609, 697, 833, 946,1064,1175,1300 844,1071,1202,1313 Charters issued to 62,160,274, Pig tin, imports of 80,181, 294, 404, 522, 383, 492, 609, 697, 833, 946,1064,1175,1300 631, 720, 860, 973,1092,1222,1336 Condition reports, abstract of 442 Pigou, A. C, memorandum presented before Exercise of trust powers by banks located in Brussels financial conference 1282 Connecticut 610 Physical volume of trade, index of: Fiduciary powers granted to 64,161, 274, By months 74,174, 288, 398, 516, 384, 493, 608, 698, 834, 946,1063,1174,1300 624, 714, 853, 968,1086,1216,1330 Foreign branches of 272, 606, 944,1299 1913-1920 480 Loans, investments, and deposit liabilities of, Discussion of. 343,453, 1914-1920 726 561, 668, 772, 906,1017,1125,1255 Real estate loans by, exercising trust powers... 949 Review, year 1920 1255 National City Bank, New York, foreign branches Platt, Edmund: of 63,159, 272, 382, 492, 606, 944,1174,1299 Appointed member of Federal Reserve Board . 566 Asof Feb. 18, 1920 272 Designated as vice governor 782 As of May 18, 1920 606 litical affiliations of directors or officers of Federal As of Aug. 18, 1920 944 Poreserve banks 10 Naval stores 78,178, 291, Pottery industry, terms of sale in 1031 401, 519, 628, 718, 857, 971,1090,1220,1334 New Zealand, practice of handling bills of exchange Preferential rates of discount 162,163 in 269 Prices: Norris, G. W., appointed governor of Federal re- Address of Hon. R. McKenna on price situation serve bank of Philadelphia 348 in England 247 Norway: Control of— Bank of Norway, condition of 45 In England, France, and Italy, 1913-1919 243 Foreign exchange rates in Christiania 43 In Germany 1206 Gold policy and foreign commerce of 35 Discussion of 8,119, 344,452, 561, Trade balance, 1912-1917 39 666, 771, 905,1016,1127,1254,1260

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Prices—Continued. Page. "Readily marketable securities" under Regula- Pa?e- Index of wholesale— tion F 385 Abroad 26,164, 279, 388, 506, Real estate loans: 616, 708, 842, 954,1069,1198,1310 By national banks exercising trust powers 949 Description of international price index.. 26,499 Regulations of Board regarding 1185 In the'United States 30, 68, Rediscounts: 165,168, 280, 282, 392, 393, 499, 511, 611, 616, Borrower, limitations upon amount redis- 702, 712, 836, 850,962, 963,1081,1210,1325 counted for, by different member banks 278 Review, year 1920 666,1260 Limitations on. for State member bank 495 Supreme council of peace conference on 363, 451 Notes for building materials or construction Private bankers, Clayton Act as applied to 948 purposes 699 Procter, W. C, resignation of, as director of Cincin- Notes of Federal land bank 609 nati branch bank 10 Regulations of Board on 1179 Production and trade: (See also Discount and open-market operations.) Discussion of 343, Rediscounts and sales of paper between Federal 453, 561, 668, 772, 906,1017,1125,1255 Reserve Banks 192, 531, 730, 871,1014,1041 Index of .- 74,174, 288, 398, April, 1919-October, 1920 1041-1044 516, 624, 714, 853, 968,1086,1216,1330 Charts showing 1042,1043 Review, year 1920 668,1255,1260 First 7 months of 1920 1014 Profit and loss account of Federal reserve banks, June, 1919-June. 1920 730 calendar year 1919 135 Regulations of the Federal Reserve Board, 1920. 1179-1194 Public debt: Regulation A—Rediscounts under section 13... 1179 Argentina 596 Regulation B—Open-market purchases of bills Brazil 819 of exchange, trade acceptances, and bankers' Chile 1056 acceptances under section 14 1181 Cuba 1165 Regulation C—Acceptance by member bank of England 1070,1199,1312 drafts and bills of exchange 1182 France 958,1073,1203,1315 Regulation D—Time deposits and savings ac- Germany 1076,1317 counts .". 1182 Italy 1320 Regulation E—Purchase of warrants 1183 "United States 1123 Regulation F—Trust powers of national banks.. 1184 Public utility loans, foreign, placed in United Regulation G—Loans on iarm land and other States .~ 692 real estate 1185 Questionnaire, Federal reserve bank salaries 54,1293 Regulation H—Membership of State banks and Railroad car shortage 560 trust companies 1186 Resolutions adopted by conference of Advisory Regulation I—Increase or decrease of capital Council and directors regarding 581 stock of Federal Reserve banks and cancella- Railroad loans, foreign, placed in the United States. 590 tion of old and issue of new stock certificates.. 1187 Railroad strike 574 Regulation J—Check clearing and collection... 1189 Railway equipment industry, terms of sale in 156 Regulation K—Banking corporations author- Railway net ton-mileage 82,183, 296, 406, 481, 524, ized to do foreign banking business under 632,722, 862, 975,1094,1224,1257,1338 section 25a 379,1190 Rates: Regulation L—Interlocking bank directorates Acceptances purchased by Federal Reserve under the Clayton Act 1193 Banks— Renewal acceptances 66, 277 Each month 91,191, 306, 413, 530, 641, Reserves: 740, 870, 984,1101,1231,1349 Bank of England, 1917-1920 485 Three months ending November 30, 1919.. 92 Bank of France, 1917-1920 485,1315 Three months ending February 29,'1920. . 414 Banks in allied, central, and neutral countries, Three months ending May 31. 1920 742 1914-1920 488 Three months ending August 31, 1920 1104 Excess (free gold), changes in, during 1919 145 Bills discounted by Federal Reserve Banks— Federal Reserve Bank— Each month 90,191, 306,412, 530, 641, Against net deposit and note liabilities, 740, 870, 984,1101,1231,1348 1919 146 Three months ending November 30, 1919.. 91 January, 1918-March ,1920 479 Three months ending February 29, 1920.. 413 July, 1919-June, 1920 667, 724 Three months ending May 31, 1920 742 German Reichsbank, 1917-1920 486 Three months ending August 31, 1920 1103 Gold, of principal banks of issue— Call money, reply to Senate resolution on 369 1900-1919 144 Discount— 1910-1920 1295-1297 Advance in 2,118, 447, 557 Great Britain, France, and Italy 909 In effect, monthly.... 110, 211, 328,436, 551, 659, New method of figuring reserves against de- 762, 890,1004,1121,1250,1368 posits 3 Prevailing in various centers 72,172, 286, Reserve position of the Federal Reserve Banks. 1, 396, 514,622, 713, 852, 967,1085,1215,1329 220, 448, 554, 663, 775, 911,1019,1134,1263 Earnings from investments of Federal Reserve Resolutions: Banks— Adopted at jonference of directors and ad- By months 90,190, 305, visory council relative to car shortage 566, 581 412, 529, 640, 740,869, 983,1101,1230,1348 Brussels international financial conference 1283 June, 1919-May, 1920 732 Of Board regarding political affiliations of offi- Foreign exchange. (See Foreign exchange cers or directors of Federal Reserve Banks... 10 rates.) Of Senate relative to call-loan interest rates... 368

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Resolutions—Continued. Page. Rulings of the Board and opinions of counsel—Con. page. Of Senate relative to discount policy of Federal Cotton-factor paper, eligibility of 162,1176 Reserve Banks 558, 582 Directors of Federal feserve Banks, member Resources and liabilities: banks required to vote for 1178 Federal Reserve Banks 96, Discount rates, preferential, on member bank 196, 314, 421, 537, 645, 748, 876, 988,1106,1235,1351 notes 162,163 Member banks in leading cities— Documentary drafts, bankers' acceptances se- By months 103, 204, 320, cured by 610 428, 544, 652, 754, 883, 995,1112,1241,1357 Domicile bills, eligibility of 386 June, 1919-June, 1920 729 Exchange charges on member bank's own Retail trade index 53, 238, 377, acceptance 162 503, 614, 706, 839, 951,1066,1195,1258,1307 Federal land bank notes, eligibility for redis- Establishment of 53 count 609 Review of business and banking conditions, 1920. .. 662- Fiduciary powers of national banks—• 670, 723-733,1253-1261 Abstract business 385 Ribbon industry, terms of sale in 467 Administration of trust department under Rulings of the Board and opinions of counsel: Regulation F 699 Abstract business of national bank under sec- "Readily marketable securities" under tion Ilk 385. Regulation F 385 Acceptances— Real estate loans 949 Agencies of national banks for purpose of Foreign buyer, acceptances secured by docu- accepting drafts 835 mentary drafts drawn on 610 Automobiles and automobile tires, drafts Foreign seller, draft drawn by an American secured by warehouse receipts covering.. 65 manufacturer for financing the purchase of Bankers' acceptances secured by docu- goods from 162 mentary drafts on foreign buyer 610 Form of certificate of deposit 495 Collection of 699 Importation of goods, draft drawn by American Dollar exchange, drafts drawn for furnish- manufacturer to finance 162 ing 835 Irrigation company paper 949 Draft drawn by an American manufacturer Joint stock land" bank notes, eligibility for for financing purchases from a foreign rediscount 609 seller 162 Limitation on aggregate rediscounts of paper Exchange charges on member bank's own of one borrower made for different member acceptance 162 banks 276, 278 Renewals, eligibility of 65, 66, 276, 277 Limitation on rediscounts for a State member Shipping documents, acceptances against. 66,1301 bank 495 Trade acceptance as actual security for National bank, abstract business of 385 accepting banks 1065 Preferential rates of discount on member bank Advertisement of State bank member that it is notes 162,163 under Government supervision 65 Private bankers, Clayton Act as applied to 948 Agricultural-implement paper— "Readily marketable securities" under Regu- Articles in the nature of permanent and lation F -: - - 385 fixed investments 1302 Real estate loans by national banks exercising Definition of 1301 trust powers 949 Distinction between agricultural and com- Rediscounts—• mercial paper 1302 Federal land bank notes 609 No obligation to rediscount even though For a State member bank, limitations on.. 495 eligible 1303 Of paper of one borrower made for different Notes given in payment for articles pur- member banks 276, 278 chased 1302 Renewal of drafts 65, 66, 2 76, 277 Same principles apply to drafts as to notes.. 1303 Shipping documents, acceptances against ... 66,1301 Two general classes of eligible agricultural State member bank— and commercial paper 1302 Advertising that it is under Government Automobiles and tires, acceptance of drafts se- supervision 65 cured by warehouse receipts covering 65 Limitations of section 9 upon amount of Borrower, limitations upon amount redis- rediscounts for 495 counted for, by different member banks 278 Time certificates of deposit subject to regula- Building materials, note for, eligibility for tions of savings department 1065 rediscount 699 Water sold by irrigation company, as trade Certificate of deposit, form of 495 acceptance 949 Clayton Act as applied to private bankers 948 Whisky in bond, warehouse receipts covering.. 494 Collection of bill-of-lading draft received from Russian State Bank, gold reserves 144,1297 nonmember bank for account of member Salaries in Federal Reserve Banks 54,1293 bank 948 Scandinavian countries, gold policy and foreign Collection of checks drawn on a member bank commerce of 35-46 forwarded by another member bank with Secretary of the Treasury: instructions to remit to a Federal Reserve Address before American Bankers' Associa- Bank 494 tion 1123,1125 Collection of maturing items for the account of Houston, David F., appointed 121 another Federal Reserve Bank 276 On bonuses to soldiers .m 340 Collection of notes and acceptances 699 On credits to European countries 137 Construction work, notes .for, eligibility for On future Treasury financing 113 rediscount 699 On income and excess-profits tax 341,1253

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Senate resolution: Page. Page. Relative to call-loan interest rates 345, 368 Tanning industry, terms of sale in 928 Relative to discount policy of reserve banks, Tariff, import, in Japan 1319 reply of Board to 558,582 Tax: Ship tonnage under construction in England 844, Certificates, Treasury, allotments of, July, 1071,1202,1313 1919-June, 1920 '. 729 Shipbuilding industry, terms of sale in 157 Income and excess profits 341,1253 Silk industry, terms of sale in 466 Legislation in Spain 692 Silver: Legislation in Italy 489 Imports and exports of... 9,108,120. 209, 221, 326, 346, Terms of sale in the principal industries: 434, 454, 550, 565, 658, 671, 761, 780. 889, Agricultural implements 1149 909, 1003, 1018, 1120, 1132, 1249, 1262, 1366 Automobile accessories 261 Price of 7, 563,1128 Automobile tires 260 Purchase of, under Pittman A ct 563, 779 Automobiles 258 Stock of, in the United States— Blankets, woolen 470 By months 109, 210, 327, 435, Books 1037 551, 659, 762, 890, 1004, 1121, 1250, 1368 Boots and shoes 930 July, 1919-June, 1920 730 Brick 938 1917-1920 825 Builders' supplies 939 Soldiers, bonuses to 340 Carpets and rugs 471 South Africa, establishment of a central reserve Cement 938 bank in 1040 China ware 1031 South America, commerce with 1261 Coal and coke 265 (Seexdso Argentina, Brazil, Chile.) Copper 149 Spa conference 779 Corsets 811 Spain, tax legislation 692 Cotton manufactures 464 Speculative loans 342, 446, 554, 665, 774, 897,1012 Dry goods 797 State banks: Electrical goods 262 Members of system— Engines and boilers 156 A cceptance liabilities of 158, 686 Fur manufacturing 807 Advertising that bank is under Govern- Furniture 936 ment supervision 65 Glass and glassware 940 Banks admitted, by months 62, 159, 273, Gloves 812 383,^492, 607, 697, 833, 945, 1063, 1174, 1299 Hardware 150 Classification of loans and discounts of 333, Plats, men's and women's 808, 809 444, 766,1007 Hosiery 471 Condition reports, abstract of.. 329, 438, 764,1005 Iron and steel 148 Earnings and dividends of 660,1251 Jewelry 1032 Loans, investments, and deposit liabilities Laces and embroideries 473 of, June, 1919-May, 1920 728 Lead , 149 Regulations of Board regarding 1186 Leather manufactures 932 Resources, etc., of all State banking institu- Lumber 933 tions 891 Machine tools 155 State banking laws: Machinery 156 ^ Mississippi law authorizing State banks to Men's clothing 803 accept drafts and bills of exchange 701 Men's furnishings 810 I Mississippi law relating to par collections 387 Men's wear, woolen and worsted 469, 802 Texas law authorizing trust companies to accept Millinery 808 drafts and bills of exchange 950 Music and musical instruments 1034 Stationery industry, terms of sale in 1037 Office appliances 1038 Statistical review of condition of Federal Reserve Oils 267 System, 1920 662-670, 723-733 Optical merchandise 1034 Steel industry, terms of sale in 148 Paints and varnishes 940 Store fixtures, terms of sale in the industry 936 Paper 1035 Strauss, Albert, retirement of, as member of Board.. 348 Petroleum 267 Strikes: Pottery 1031 Coal, in England 1198,1311 Railway equipment 156 Railroad, in the United States 574 Ribbons, silk 466 Sugar, receipts and meltings 77,178, 291, 401, Shipbuilding 157 519, 628, 718, 857, 971, 1090, 1220, 1334 Silk 466 Sweaters, terms of sale in the industry 473 Stationery 1037 Sweden: Steel 148 Bank of Sweden, condition statement 45 Store fixtures 936 Foreign exchange rates in Stockholm 40,42 Sweaters, woolen 473 Gold policy and foreign commerce of 35 Tanning 928 Trade balance, 1912-1917 39 Thread, cotton 464 Wholesale prices in, index of 32,166, 281, Thread, silk 466 392, 510, 620, 711, 849, 962,1080,1209,1324 Tile 938 Sugar production and exports 1163 Underwear, cloth 812 Supreme council of peace conference on economic Underwear, knit 472 conditions 363,451 Varnish 940

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Terms of sale in the principal industries—Con. Page. Page. Wire 148 Trust powers of national banks. (See Fiduciary Women's garments 805 powers.) Women's wear, woolen 469 Underwear: Wood pulp 1035 Production and orders 925,1027,1145,1275 Woolens and worsteds 468 Terms of sale in the industry 472,812 Yarns— United States notes, stock of, in the United States: Cotton 464 By months 109, 210, ?&7,435 Silk 466 551, 659, 762.890,1004.1121,1250,1368 Wool 468 1917-1920 '., _' 825 Zinc 149 Van Valkenburgh, Judge, opinion by, on right of Texas law authorizing trust companies to accept W& national banks having trust powers to use the drafts and bills of exchange 950 Tvords "trust company" as part of corporate title. 497 Textiles, manufacturing of 81,IS2,295, Varnish industry, terms of sale in 940 404, 522, 631, 721, 861, 974,1093,1222 1337 Vessels: Thread: Built in the United States 82,183,296, Cotton, terms of ss,ie in the industry 464 405, 523, 632, 722,862, 975,1094,1223,1338 Silk- tGtins of sale in the industry 466 Cleared in foreign trade, tonnage of.. 82,183, 296,405, Thompson, W, S.? resignation as director of Federal 481,524, 632, 722, 862, 975,1094,1224,1258,1338 Reserve'Bank of New York 10 War Finance Corporation, suspension by, of loans in Tile industry, terms of sale in 938 aid of exports 562 Time deposits and savings accounts, regulation of War paper, discount of 90,191,306, board regarding 1182 412,530, 641, 665, 741,870, 984,1101,1231,1348 Time schedule, interdistrict 746,987 Warrants, purchase of, regulations of Board regard- Title of national bank, use of words "trust com- ing 1183 pany " as part of 497 Whisky in bond, warehouse receipts covering, as Tobacco, sale of revenue stamps for manufactures collateral 494 of 81,182, 295 Wholesale prices: 405, 523, 632, 722, 861, 974,1093,1223,133^ Control of, in England, France, and Italy, Trade: 1913-1919 243 Foreign, index of 694, 841, 953,1068,1197,130! • Indexes of—• Establishment of 694 Abroad 26,164, 279, Physical volume of— 388,506,616, 708, 842, 954,1069,1198,1310 Discussion of 343, Establishment of 26 453, 561, 668, 772, 906,1017,1125,1255 In the United States 30, 68,165, Index of 74,174, 288, 168, 280, 282, 392, 393, 499, 511, 611, 616, 398,516,624, 714, 853, 968,1086,1216,1330 702, 712, 836, 850, 962, 963,1081,1210,1325 Review of. year 1920 668.1255 Wholesale trade, reports on, by Federal Reserve Retail, index of 53, 238, 377, agents 570, 795, 926,1029,1143,1274 503,614,706, 839, 951,1066,1195,1258,1307 Wills, D. C, appointed member of Federal Reserve Establishment of 53 Board 1019 Review, year 1920 1258 Wisconsin, exercise of trust powers by national bolesale, reports on... 570, 795, 926,1029,1143.127* banks located in 700 Transportation situation 560, 581, 773 Women's garments, terms of sale in the industry.. 805 Treasury financing 1,113, 213, 339, 445, 553,661, Wood pulp and paper, production of 81,182, 295, 769,897,1011, 1123,1253 405, 523, 631, 721, 861, 974,1093,1223, 1337 Bond purchases suspended 445 Wood pulp industry, terms of sale in 1035 Plan for future 113 Woolen and worsted industry, .terms of sale in 468 Secretary of Treasury on foreign financing. . . . 137 Yarns: Treasury notes, stock of in United States. .. 109. 210. 327, Cotton, terms of sale in the industry . 464 435,551, 659, 762, 8)0, 1004,1121.12:,0, 1368 Silk, terms of sale in the industry 466 "Trust company" as part of corporate title of Woolen, terms of sale in the industry 468 national bank having trust powers 497 Zinc industry, terms of sale in 149

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® FEDERAL RESERVE BANK CITIES O FEDERAL RESERVE BRANCH CITIES

The branch at Helena, Mont., has been authorized by the Federal Reserve Board but is not yet open f'jr business.

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